Cinemugam (Kollywood)

Answer the following questions in one sentence each. 1.       What is partnership? Ans. Partnership is a form of business organisation in which two or more persons enter into an agreement, contribute certain capital, undertake certain lawful business to earn profit and share the profits or losses in agreed proportion. 2.       What is partnership deed? Ans.  A partnership deed is a written agreement duly stamped and signed document containing the terms and conditions of the partnership. 3.       State the meaning of a Balance Sheet. Ans. A balance sheet is a statement showing the financial position of the business in the form of its assets and liability on a particular date. 4.       When are partners’ current accounts opened? Ans. When partnership form adopts fixed capital method, it opens partners’ current accounts to record dealing of partners with partnership firm. 5.       Write the meaning of bad debts? Ans. The debt or its part which cannot be recovered from a debtor is called b