Match the LIST-I with LIST-IILIST-ILIST-IIA.‘Partnership is the relat…

Match the LIST-I with LIST-II

LIST-I		LIST-II
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’.	I.	Companies Act, 2013
B.	The Central government has prescribed the maximum number of partners in a firm to be 50.	II.	AS-26
C.	Intangible asset is defined as an identifiable, non monetary, without physical existence and held for use in the production or supply of goods or services for rental to others or for administrative purposes.	III.	Partnership Act, 1932
D.	It is a process to apply for subscribing to IPOs and Right Issue of securities	IV.	ASBA

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → A - III, B - I, C - II, D - IV

Each statement is a definition or rule taken from a particular law, standard or process, so the match turns on where each one comes from.

(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’. — this matches (III) Partnership Act, 1932. It is the Act’s own definition of partnership, and every other partnership rule rests on it.

(B) The Central government has prescribed the maximum number of partners in a firm to be 50. — this matches (I) Companies Act, 2013. Section 464 of that Act empowers the Central Government to prescribe the maximum number of partners, and it has fixed 50. The Partnership Act itself sets no maximum.

(C) Intangible asset is defined as an identifiable, non monetary, without physical existence and held for use in the production or supply of goods or services for rental to others or for administrative purposes. — this matches (II) AS-26, the Accounting Standard on Intangible Assets. It is also the standard that decides how goodwill may be shown in the books.

(D) It is a process to apply for subscribing to IPOs and Right Issue of securities — this matches (IV) ASBA, Application Supported by Blocked Amount. The applicant’s money stays blocked in his own bank account and is debited only if securities are allotted.

NCERT (2026-27 edition):
Nature of Partnership – “When two or more persons join hands to set up a business and share its profits and losses, they are said to be in partnership. Section 4 of the Indian Partnership Act 1932 defines partnership as 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’. … 1. 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):
Applicability of Accounting Standard 26: Intangible Assets – “… As per the Standard, Intangible Asset under AS 26 is defined as an identifiable, non monetary, without physical existence and held for use in the production or supply of goods or services for rental to others or for administrative purposes.”

NCERT (2026-27 edition):
Applications Supported by Blocked Amount (ASBA) – “… ASBA is a process developed by Securities and Exchange Board of India (SEBI)to apply for subscribing to IPOs and Rights Issue etc. of securities. Under the method, the applicant authorises the bank to block the bank account for the application money, for subscribing the issue.”