CBSE Class 12 Accountancy — Flashcards for Quick Revision

A: Partnership is defined 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'. It involves two or more persons joining han

A: 1. Two or More Persons (minimum 2, maximum 50) 2. Agreement (oral or written) 3. Business (carrying on legal business activities) 4. Mutual Agency (partners act as agents for each other) 5. Sharing of

A: Partnership Deed is a written document containing terms of partnership agreement. Main contents include: - Names and addresses of firm and partners - Capital contribution by each partner - Profit and

A: A company is a person, artificial, invisible, intangible and existing only in the eyes of law. Being a mere creation of law, it possesses only those properties which the charter of its creation confer

A: 1. Body Corporate - formed under law 2. Separate Legal Entity - distinct from members 3. Limited Liability - members liable only to extent of unpaid shares 4. Perpetual Succession - continues despite

A: 1. Companies Limited by Shares - liability limited to nominal value of shares held 2. Companies Limited by Guarantee - liability limited to guarantee amount in winding up 3. Unlimited Companies - no l

A: Reconstitution of a partnership firm means any change in the existing partnership agreement that results in ending the old agreement and creating a new one with changed relationships among partners. H

A: The main modes of reconstitution are: 1) Admission of a new partner (for additional capital or managerial help), 2) Change in profit sharing ratio among existing partners, 3) Retirement of an existing

A: A newly admitted partner acquires: 1) Right to share the assets of the partnership firm, and 2) Right to share the profits of the partnership firm. For these rights, the partner brings an agreed amoun