Accountancy Part AAccounting for Partnership

The maximum number of Partners in a Partnership firm is :

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → 50

Under Section 464 of the Companies Act, 2013, the Central Government may prescribe the maximum number of partners, but not more than 100. It has prescribed 50.

Option (1) 100 — Incorrect. 100 is the ceiling within which the Government may fix the limit; the limit fixed is 50.

Option (2) 50 — Correct.

Option (3) 250 — Incorrect.

Option (4) 200 — Incorrect.

NCERT (2026-27 edition):
Two or More Persons – “… In order to form partnership, there should be at least two persons coming together for a common goal. In other words, the minimum number of partners in a firm can be two. There is however, a limit on their maximum number. By virtue of Section 464 of the Companies Act 2013, the Central Government is empowered to prescribe maximum number of partners in a firm but the number of partners can not be more than 100. The Central government has prescribed the maximum number of partness in a firm to be 50.”

NCERT (2026-27 edition):
Test your Understanding – I

Extract from the NCERT textbook

NCERT (2026-27 edition):
Checklist to Test your Understanding

Extract from the NCERT textbook

The maximum number of Partners in a Partnership firm is :

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → 50

Under Section 464 of the Companies Act, 2013, the Central Government may prescribe the maximum number of partners, but not more than 100. It has prescribed 50.

Option (1) 100 — Incorrect. 100 is the ceiling within which the Government may fix the limit; the limit fixed is 50.

Option (2) 50 — Correct.

Option (3) 250 — Incorrect.

Option (4) 200 — Incorrect.

NCERT (2026-27 edition):
Test your Understanding – I

Extract from the NCERT textbook

NCERT (2026-27 edition):
Checklist to Test your Understanding

Extract from the NCERT textbook