(a) Persons who have entered into partnership with one another are collectively called : (A) Firm (B) Partners

Question

Q. (a) Persons who have entered into partnership with one another are collectively called : (A) Firm (B) Partnership (C) Partners (D) Partners' firm

(OR)

(b) In the absence of partnership deed, partners are entitled to : (A) Interest on Capital (B) Share of profits/losses in the ratio of their capitals (C) Interest @ 6% p.a. on loans/advances by them to the firm (D) Remuneration for the firm's work

CBSECBSE Class XII Board 2026MCQ· 1mImportance★★★★★

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Part (a)Concept understanding — Partnership Accounting

Partnership Accounting — Your First Look

Think of a partnership as a group of friends starting a food stall together. One brings the money, another brings the cooking skills, a third brings the location. They agree to share the profits — but not necessarily equally. They also agree that if the stall loses money, they'll share the loss too.

That's the everyday intuition. Now let's make it precise.

What is a Partnership?

According to the Indian Partnership Act, 1932, a partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. The NCERT Class-12 textbook defines it as a business owned and run by two or more persons (maximum 50, as per Companies Act, 2013) who contribute capital and share profits/losses in an agreed ratio.

The key features are:

Two or more persons — minimum 2, maximum 50
Agreement — written (partnership deed) or oral
Profit-sharing — the core purpose
Unlimited liability — each partner is personally liable for the firm's debts
Mutual agency — each partner can bind the firm and other partners

Why Does Partnership Accounting Matter?

A sole proprietor has one owner — simple. A company has many shareholders — complex but structured. A partnership sits in between. The accounting challenge is: how do we track each partner's claim on the business?

The business is separate from the partners for accounting purposes, but the partners are personally involved. We need to record:

What each partner brings in (capital)
What each partner takes out (drawings)
What each partner earns (interest, salary, commission, share of profit)
What happens when a partner joins or leaves

The Two Key Accounts

1. Capital Account

This records the permanent investment of each partner. There are two methods:

Fixed Capital Method — Capital remains constant unless partners decide to change it. All other transactions go to a separate Current Account.

Fluctuating Capital Method — Capital changes with every transaction (drawings, interest, salary, share of profit/loss). Only one account per partner.

NCERT recommends the Fixed Capital Method for clarity. Here's the format:

Partner's Capital Account (Fixed Capital Method) | Particulars | A (₹) | B (₹) | | Particulars | A (₹) | B (₹) | |---|---|---|---|---|---| | To Balance c/d | 50,000 | 30,000 | | By Balance b/d | 50,000 | 30,000 | | | | | | By Bank (additional capital) | — | — | | Total | 50,000 | 30,000 | | Total | 50,000 | 30,000 |

The opening balance is the capital brought in. The closing balance is the same unless additional capital is introduced or capital is withdrawn permanently.

2. Current Account

This records everything else — drawings, interest on capital, interest on drawings, salary, commission, and share of profit/loss.

Partner's Current Account (Fixed Capital Method) | Particulars | A (₹) | B (₹) | | Particulars | A (₹) | B (₹) | |---|---|---|---|---|---| | To Drawings | 5,000 | 4,000 | | By Balance b/d | 2,000 | 1,000 | | To Interest on Drawings | 250 | 200 | | By Interest on Capital | 3,000 | 1,800 | | To Balance c/d | 5,750 | 3,600 | | By Salary | 6,000 | — | | | | | | By Commission | — | 4,000 | | | | | | By Share of Profit | — | 1,000 | | Total | 11,000 | 7,800 | | Total | 11,000 | 7,800 |

The balance in the Current Account can be debit (overdrawn) or credit (undrawn profit).

The Profit and Loss Appropriation Account

This is the heart of partnership accounting. It shows how the net profit is distributed among partners — not how it is earned.

Important

The Profit and Loss Appropriation Account is an extension of the Profit and Loss Account. It starts with Net Profit (from the P&L Account) and then shows appropriations.

Format:

Profit and Loss Appropriation Account | Particulars | Amount (₹) | | Particulars | Amount (₹) | |---|---|---|---| | To Interest on Capital: | | | By Net Profit (transferred from P&L A/c) | 1,00,000 | | — A | 6,000 | | By Interest on Drawings: | | | — B | 4,000 | | — A | 500 | | To Partner's Salary: | | | — B | 300 | | — A | 12,000 | | | | | To Partner's Commission: | | | | | | — B | 8,000 | | | | | To Profit transferred to: | | | | | | — A's Current A/c (3/5) | 42,120 | | | | | — B's Current A/c (2/5) | 28,080 | | | | | Total | 1,00,800 | | Total | 1,00,800 |

Notice: The total on the debit side equals the total on the credit side. The net profit plus interest on drawings is the distributable profit. …

Part (b)Concept understanding — Partnership Deed Definition

Let’s start with something you already know. Suppose you and two friends decide to start a small business together — say, a tiffin service. You each bring in some money, you decide who will cook, who will deliver, and who will keep accounts. But after a month, one friend says, “I should get extra pay because I do all the cooking.” Another says, “I put in more money, so I should get more profit.” Without a written agreement, you’ll argue endlessly. That’s exactly why a Partnership Deed exists.

Everyday Intuition

A partnership deed is simply the rulebook that partners agree to follow. It’s like the constitution of the partnership. It answers questions like: How much capital did each partner bring? How will profits be shared? Will partners get a salary or interest on their capital? What happens if a partner wants to leave? Without this rulebook, the law (the Indian Partnership Act, 1932) steps in with default rules — but those may not suit your business.

Precise Meaning (as per NCERT Class-12 Accountancy)

A Partnership Deed is a written document that contains the terms and conditions of the partnership. It is signed by all partners and is legally binding. While the law does not compel a written deed (an oral agreement is also valid), a written deed is strongly recommended to avoid disputes.

The deed typically includes:

Name and address of the firm and partners
Nature of business
Capital contribution by each partner
Profit-sharing ratio
Interest on capital, drawings, and loans
Salary or commission to partners
Admission, retirement, or death of a partner
Method of valuing goodwill
Settlement of accounts on dissolution

Important

If no partnership deed exists, the Indian Partnership Act, 1932 applies default rules: profits/losses shared equally, no interest on capital, no salary to partners, interest on drawings at 6% p.a., and interest on partner’s loan at 6% p.a.

Why It Matters in Accounting

The partnership deed is the source document for all accounting entries related to partners. Every adjustment — interest on capital, salary, commission, profit share — is based on what the deed says. If the deed is silent, the Act’s default rules apply.

For example:

If the deed says “Interest on capital @ 10% p.a.”, you must calculate and record it.
If the deed says “Partner A gets a salary of ₹5,000 per month”, you must debit the Profit and Loss Appropriation Account.

Accounting Treatment

All items related to partners (interest on capital, salary, commission, profit share) are recorded in the Profit and Loss Appropriation Account (a special account that shows how net profit is distributed among partners). The final amounts are then transferred to the Partners’ Capital Accounts (or Current Accounts, if the firm uses fixed capital method).

Key Rules (NCERT-based):

Item	Debit	Credit
Interest on Capital	Profit & Loss Appropriation A/c	Partner’s Capital/Current A/c
Partner’s Salary	Profit & Loss Appropriation A/c	Partner’s Capital/Current A/c
Partner’s Commission	Profit & Loss Appropriation A/c	Partner’s Capital/Current A/c
Interest on Drawings	Partner’s Capital/Current A/c	Profit & Loss Appropriation A/c
Share of Profit	Profit & Loss Appropriation A/c	Partner’s Capital/Current A/c
Share of Loss	Partner’s Capital/Current A/c	Profit & Loss Appropriation A/c

Note

In the fixed capital method, partners have two accounts: a fixed Capital Account (unchanged except for additional capital or permanent withdrawal) and a Current Account (for all other transactions like salary, interest, drawings, profit share). In the fluctuating capital method, only one Capital Account is used, and all items are recorded there.

Format of Profit and Loss Appropriation Account (as per NCERT)

This is the proforma you’ll see in your textbook. It shows how net profit is appropriated (distributed) according to the partnership deed.

Profit and Loss Appropriation Account …

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Part (a): (A) Firm — the collective name for the partners. Part (b): (C) Interest @ 6% p.a. on loans/advances — the only entitlement of the listed options when there is no deed.

Part (a)

Section 4 of the Indian Partnership Act, 1932 defines the terms precisely:

Partnership — the relation between persons who agree to share the profits of a business.
Partners — the persons who have entered into partnership, individually.
Firm — those persons collectively.
Firm name — the name under which the business is carried on.

The question asks for the collective name of the persons → Firm. …

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

Showing the 12 most recent of 125 on this concept.

CBSE 2026Set 67/3/11 markMCQ
$Q. (a) Persons who have entered into partnership with one another are collectively called : (A) Firm (B) Partnership (C) Partners (D) Partners' firm$
(OR)
$(b) In the absence of partnership deed, partners are entitled to : (A) Interest on Capital (B) Share of profits/losses in the ratio of their capitals (C) Interest @ 6% p.a. on loans/advances by them to the firm (D) Remuneration for the firm's work$
›Reveal solutionSolution
Part (a): (A) Firm — the collective name for the partners. Part (b): (C) Interest @ 6% p.a. on loans/advances — the only entitlement of the listed options when there is no deed.

Part (a)

Section 4 of the Indian Partnership Act, 1932 defines the terms precisely:

Partnership — the relation between persons who agree to share the profits of a business.

Partners — the persons who have entered into partnership, individually.

Firm — those persons collectively.

Firm name — the name under which the business is carried on.

The question asks for the collective name of the persons → Firm. …
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CBSE 2026Set 67/4/11 markMCQ
$Q. Ravi, Sunil and Amit were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 5. On 1st April, 2025, Ravi retired. Sunil and Amit decided to share future profits in the ratio of 2 : 3. After all adjustments with respect to general reserve, goodwill and revaluation, etc., the balances in the capital accounts of Ravi, Sunil and Amit stood at ₹ 3,00,000; ₹ 2,40,000 and ₹ 3,60,000 respectively. It was decided that the amount payable to Ravi will be brought by Sunil and Amit in such a way so as to make their capitals proportionate to their new profit sharing ratio. The amount brought in by Sunil and Amit will be : (A) Sunil ₹ 1,00,000, Amit ₹ 2,00,000 (B) Sunil ₹ 1,20,000, Amit ₹ 1,80,000 (C) Sunil ₹ 1,50,000, Amit ₹ 1,50,000 (D) Sunil ₹ 80,000, Amit ₹ 2,20,000$
›Reveal solutionSolution
After Ravi’s retirement, Sunil and Amit adjust their capitals to be proportionate to their new profit-sharing ratio (2:3). The required additional contributions are Sunil ₹1,20,000 and Amit ₹1,80,000 — option (B).

Concept First — Why This Treatment?

When a partner retires, the continuing partners often decide to adjust their capital accounts so that the capitals are in the new profit-sharing ratio. This ensures that capital contributions align with the risk and reward sharing going forward. The amount payable to the retiring partner is brought in by the continuing partners in the same proportion as their new ratio, unless otherwise agreed.

The key rule: Total capital of the new firm is determined first (usually based on the retiring partner’s capital or a mutually agreed figure), then each continuing partner’s capital is calculated as their share of that total. The difference between this required capital and their existing balance is the amount they must bring in (or withdraw).

Watch out

Common Pitfall

Students often mistakenly use the old ratio to divide the amount payable to the retiring partner. Remember: after retirement, the continuing partners share future profits in the new ratio, so the capital adjustment must also follow the new ratio.

Step-by-Step Solution

Step 1: Determine the Total Capital of the New Firm

After all adjustments (general reserve, goodwill, revaluation), the balances are:

Ravi: ₹3,00,000 (this is the amount payable to him)

Sunil: ₹2,40,000

Amit: ₹3,60,000

The continuing partners (Sunil and Amit) decide to bring in cash so that their capitals become proportionate to their new ratio of 2:3.

The total capital of the new firm is not simply the sum of Sunil and Amit’s existing capitals. Instead, we use the retiring partner’s capital as a base. Since Ravi’s capital is ₹3,00,000 and his old share was 4/12, the total capital of the firm before retirement was:

Total old capital = Ravi’s capital ÷ his old share = ₹3,00,000 ÷ (4/12) = ₹3,00,000 × 12/4 = ₹9,00,000

But after retirement, the firm’s capital belongs only to Sunil and Amit. Their combined existing capital is ₹2,40,000 + ₹3,60,000 = ₹6,00,000. The difference of ₹3,00,000 (Ravi’s capital) is what needs to be brought in by Sunil and Amit.

Tip

Shortcut

The amount payable to the retiring partner (₹3,00,000) is exactly the amount that the continuing partners must bring in total. This amount is then divided in the new profit-sharing ratio (2:3) to find each partner’s contribution.

Step 2: Calculate the Amount to be Brought in by Each Partner

Total amount to be brought in = ₹3,00,000 (Ravi’s capital)

New ratio of Sunil : Amit = 2 : 3

Sunil’s share = 2/5 × ₹3,00,000 = ₹1,20,000

Amit’s share = 3/5 × ₹3,00,000 = ₹1,80,000

Step 3: Verify the New Capital Balances

After bringing in the cash:

Sunil’s new capital = ₹2,40,000 + ₹1,20,000 = ₹3,60,000

Amit’s new capital = ₹3,60,000 + ₹1,80,000 = ₹5,40,000

Check proportionality: Sunil : Amit = ₹3,60,000 : ₹5,40,000 = 2 : 3 ✓ …
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CBSE 2026Set 67/4/11 markMCQ
$Q. Dinesh, Siddharth and Naina were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2025, they decided to dissolve the firm. On this date, the firm had debtors amounting to ₹ 2,10,000 and provision for doubtful debts of ₹ 20,000. On dissolution, debtors of ₹ 10,000 proved bad and the remaining debtors realised 90%. Amount realised from debtors will be : (A) ₹ 1,71,000 (B) ₹ 2,00,000 (C) ₹ 1,80,000 (D) ₹ 1,89,000$
›Reveal solutionSolution
Amount realised from debtors on dissolution = ₹1,80,000 (Option C).

Concept: Realisation of Debtors on Dissolution

When a partnership firm dissolves, all assets are converted into cash through a Realisation Account. Debtors represent amounts owed to the firm, and their realisation involves two steps:

Identify the book value of debtors (gross debtors minus any provision for doubtful debts already created).

Determine actual cash realised based on what is collected and what proves irrecoverable.

The provision for doubtful debts is an accounting estimate created before dissolution. On dissolution, we ignore this provision and work with the actual outcome: which debtors pay and which don't. The Realisation Account is debited with the book value of debtors (net of provision) and credited with the actual cash received.

Watch out

A common mistake is to deduct the provision for doubtful debts from the amount realised. The provision is merely an accounting adjustment already made in the books; on dissolution, we focus on actual realisations. The ₹20,000 provision is irrelevant to the cash calculation.

Treatment on Dissolution

Step 1: Transfer debtors to Realisation Account at their net book value:

Gross Debtors = ₹2,10,000

Less: Provision for Doubtful Debts = ₹20,000

Net Book Value = ₹1,90,000

The Realisation Account is debited with ₹1,90,000 (the asset taken over for realisation).

Step 2: Determine actual cash realised:

Debtors proving bad = ₹10,000 (these yield zero cash)

Remaining debtors = ₹2,10,000 − ₹10,000 = ₹2,00,000

These remaining debtors realise 90% of their face value

Cash realised = 90% of ₹2,00,000 = ₹1,80,000

The Realisation Account is credited with ₹1,80,000 (cash received), and Bank/Cash Account is debited.

Solution

Working Note 1: Calculation of Amount Realised from Debtors

Particulars Amount (₹)
Total (Gross) Debtors 2,10,000
Less: Debtors proving bad 10,000
Good Debtors 2,00,000
Realisation percentage 90%
Cash Realised (90% of ₹2,00,000) 1,80,000

The provision for doubtful debts (₹20,000) does not enter this calculation. It was an accounting estimate; the actual bad debts are ₹10,000, and the actual collection rate on the remaining ₹2,00,000 is 90%.

Journal Entry (Dissolution)

| Date | Particulars | L.F. | Debit (₹) | Credit (₹) | …
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CBSE 2026Set 67/5/11 markMCQ
$Q. (a) John, Honey and Racob were partners in a firm sharing profits and losses equally. On 31st July, 2025 John died. His share in the profits of the firm from the date of last balance sheet till the date of his death will be : (A) Debited to Profit and Loss Account (B) Credited to Profit and Loss Account (C) Debited to Profit and Loss Suspense Account (D) Credited to Profit and Loss Suspense Account$
(OR)
$(b) Shashi, Maya and Komal were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2025 Komal retired. The new profit sharing ratio between Shashi and Maya was decided as 3 : 5. The gain or sacrifice of Shashi and Maya on Komal’s retirement was : (A) Shashi’s sacrifice 1/8; Maya’s gain 13/40 (B) Shashi’s gain 1/8; Maya’s sacrifice 13/40 (C) Shashi’s sacrifice 1/8; Maya’s sacrifice 13/40 (D) Shashi’s gain 1/8; Maya’s gain 13/40$
›Reveal solutionSolution

Part (a): a deceased partner's share of profit up to the date of death is debited to the Profit and Loss Suspense Account → option (C).

Part (b): Shashi sacrifices 1/8 and Maya gains 13/40 → option (A).

Part (a)

When a partner dies during the year, his share of profit from the date of the last Balance Sheet to the date of death is estimated (on time or sales basis) and credited to the deceased partner's capital account. Since the year-end Profit and Loss Account is not yet prepared, the corresponding debit is parked in the Profit and Loss Suspense Account, which is later adjusted. Therefore his share is debited to the Profit and Loss Suspense Account. …
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CBSE 2026Set 67/5/11 markMCQ
$Q. Alok, Sarah and Aditya were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 1st January, 2025 Alok advanced a loan of ₹ 2,00,000 to the firm. In the absence of a partnership agreement, the amount of interest on loan due to Alok on 31st March, 2025 will be : (A) ₹ 20,000 (B) ₹ 12,000 (C) ₹ 3,000 (D) ₹ 5,000$
›Reveal solutionSolution
In the absence of a partnership deed, interest on a partner's loan is payable at 6% p.a. under Section 13(d) of the Indian Partnership Act, 1932. For a loan of Rs 2,00,000 advanced on 1st January 2025, interest for 3 months (Jan-Mar 2025) is Rs 3,000. The correct option is (C) Rs 3,000.

Concept and Accounting Treatment

The Indian Partnership Act, 1932, provides default rules when partners have not signed a partnership deed (or the deed is silent on a matter). For interest on a partner's loan to the firm, Section 13(d) of the Act states that the loan shall carry interest at 6% per annum. This is a charge against profits — the firm must pay it even if it makes a loss. It is an expense of the firm, not an appropriation of profit.

The journal entry to record this interest is:

Debit Interest on Partner's Loan A/c (expense)

Credit Alok's Loan A/c (liability)

The rate is fixed by law at 6% p.a. when no deed exists, and interest runs from the date the loan was advanced to the balance-sheet date (or repayment date, whichever is earlier).

Solution

Working Note 1: Time Period

Loan advanced: 1st January, 2025

Interest due up to: 31st March, 2025

Number of months: January, February, March = 3 months

Working Note 2: Interest Amount

Principal: Rs 2,00,000; Rate: 6% p.a.; Time: 3/12 year

Interest = 2,00,000 x 6/100 x 3/12 = Rs 3,000 …
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CBSE 2026Set 67/5/11 markMCQ
$Q. Sushil and Sapna were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2025, the firm was dissolved. On the date of dissolution there existed a balance of ₹ 1,20,000 in sundry creditors account. The sundry creditors were payable after three months. They were paid immediately at a discount of 12% p.a. The amount paid to sundry creditors was : (A) ₹ 1,20,000 (B) ₹ 1,23,600 (C) ₹ 1,16,400 (D) ₹ 1,34,400$
›Reveal solutionSolution
The sundry creditors, originally ₹1,20,000, were paid immediately at a 12% p.a. discount for three months, resulting in a payment of ₹1,16,400.

When a partnership firm undergoes dissolution, the primary objective is to close down its operations by realising all assets and settling all liabilities. To achieve this, a special account called the Realisation Account is prepared. This account serves as a temporary ledger to record all transactions related to the sale of assets and payment of liabilities, ultimately determining the profit or loss arising from the dissolution process.

External liabilities, such as Sundry Creditors, are first transferred to the credit side of the Realisation Account. This closes their individual ledger accounts and brings them into the dissolution process. When these liabilities are subsequently paid, the Realisation Account is debited, and the Bank/Cash Account is credited. Debiting the Realisation Account signifies an expense or loss incurred during the dissolution, as funds are being used to settle the firm's obligations.

In this specific scenario, the Sundry Creditors were due after three months but were paid immediately. Paying a liability before its due date often results in a discount, as the creditor receives their money earlier than anticipated. This discount reduces the actual cash outflow from the firm. The discount is calculated on the original amount of the liability for the period by which the payment is advanced, at the agreed annual rate. The amount actually paid is the original liability less this discount.

The accounting treatment for the payment of creditors at a discount involves:

Transfer of Creditors: (Though not explicitly asked for, conceptually, Sundry Creditors Account is debited to close it, and Realisation Account is credited).

Payment of Creditors: Realisation Account is debited with the actual amount paid (original amount minus discount), and the Bank/Cash Account is credited with the same amount, reflecting the reduction in cash.

Working Notes

Calculation of Discount on Sundry Creditors

Original amount of Sundry Creditors = ₹1,20,000

Discount rate = 12% p.a.

Period for which discount is received = 3 months (since payment was made 3 months before the due date)

Discount = Original Amount $\times$ Rate $\times$ Period

Discount = ₹1,20,000 $\times$ $\frac{12}{100}$ $\times$ $\frac{3}{12}$

Discount = ₹1,20,000 $\times$ 0.12 $\times$ 0.25

Discount = ₹3,600

Calculation of Amount Paid to Sundry Creditors …
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CBSE 2026Set MARCH1 markMCQ
$Q. In order to form a partnership, there should be atleast :$
(a) a) One person
(b) b) Two people
(c) c) Seven people
(d) d) Fifty people
›Reveal solutionSolution

A partnership requires a minimum of two persons, so the answer is (b) Two people.

Under the Indian Partnership Act, 1932, partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. The word "persons" is plural, which means at least two are needed to enter into a partnership agreement.

…

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CBSE 2026Set MARCH1 mark
$Q. Partnership comes into existence as a result of __________ among the partners.$
›Reveal solutionSolution

Partnership comes into existence as a result of an agreement among the partners.

Under the Indian Partnership Act, 1932, partnership is the relation between persons who have agreed to share the profits of a business. It arises from a contract (agreement), not merely from status or birth. This agreement may be oral or written; when written, it is called the partnership deed.

…

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CBSE 2026Set ANNUAL1 markMCQ
$Q. Preparation of partnership agreement in written form is$
(a) Compulsory
(b) Voluntary
(c) Partly compulsory
(d) None of these
›Reveal solutionSolution

Writing the partnership agreement is voluntary - option (b).

A partnership arises from an agreement, which may be oral or in writing. The law does not compel the agreement to be in writing, so preparing a written partnership deed is voluntary. However, a written deed is strongly recommended bec …

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CBSE 2026Set ANNUAL1 mark
$Q. Fill in the blank: All the partners are collectively called as ________.$
›Reveal solutionSolution

Answer: A firm.

Under the Indian Partnership Act, 1932, the persons who have entered into partnership with one another are individually called partners and collectively called a firm. The …

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CBSE 2026Set ANNUAL1 mark
$Q. State whether True or False: To prepare partnership deed is compulsory.$
›Reveal solutionSolution

The statement is False.

The law does not make a written partnership deed compulsory; a partnership can be formed even by an oral or implied agreement. A written deed is only strongly …

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CBSE 2026Set ANNUAL1 mark
$Q. Answer in one word/sentence: The provisions of which Act applies in the absence of partnership deed?$
›Reveal solutionSolution

Answer: Indian Partnership Act, 1932.

When there is no partnership deed, or it is silent on a point, the provisions of the Indian Partnership Act, 1932 apply - e.g. equal profit sharing, no interest on …

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Particulars	Amount (₹)
Total (Gross) Debtors	2,10,000
Less: Debtors proving bad	10,000
Good Debtors	2,00,000
Realisation percentage	90%
Cash Realised (90% of ₹2,00,000)	1,80,000

Q.(a) Persons who have entered into partnership with one another are collectively called : (A) Firm (B) Partnership (C) Partners (D) Partners' firm

Part (a)

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