In which year, Indian partnership Act was passed?

1932

The correct answer is option 2- 1932.

Indian Partnership Act was passed in 1932.

The Indian Partnership Act, 1932 came into effect on 1st October 1932. It governs the laws related to partnership firms in India. Accounting for partnership firms has it’s own peculiarities, as the partnership firm comes into existence when two or more persons come together to establish business and share its profits. On many issues affecting distribution of profits, there may not be any specific agreement between the partners. In such a situation the provisions of the Indian Partnership Act 1932 apply.