Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

What is the liability of partners in a partnership firm?

Options:

Limited

No liability

Unlimited

Depending on the situation

Correct Answer:

Unlimited

Explanation:

The correct answer is option 3- Unlimited.

According to Indian Partnership Act,1932, partners have unlimited liability which means their private assets can be used for paying firm debts.