5. Which of the following statements are TRUE about Limited Liability Partnership (LLP) in
India :

L LLPs are registered under the Partnership Act 1932

11. Liability of all the partners in an LLP are limited to their stake in the firm as that of
shareholders of a company

111. Registration of LLPs are optional
17. There is only joint liability for partners in an LLP (No Joint and Several liability)
(A) Statements I and II are True (B) Statements IT and III are True

(C) Statements III and IV are True (D) Statements II and IV are True

6. Which of the following is an INCORRECT statement in respect of the Joint and Several

liability of Partners in a Firm:
(A) Partners are collectively liable for the debts of the firm

(B) Personal properties of partners are not liable for the debts of the firm and only the
assets of the firm will be used to pay off the firm’s debts

(C) Personal properties of individual partners are liable for the debts of’ the firm

(D) Personal properties of an individual partner will be used to pay off the liabilities,
if nothing is realisable from other partners

7. Anew partner is admitted in a Firm having two old partners with profit sharing ratio of 3:2.
The new profit sharing ratio is agreed as 3:2:1. The sacrificing ratio of old partners are :

ம

(A) 2:1 (B) 1:1

(0 3:2 (D) 4:3

8. | Which of the following is UNTRUE about the Dissolution of a Firm :
(A) All assets and liabilities are transferred to Revaluation Account
(B)_ Realisation Account is prepared to find out profit or loss on realisation
(C) Profit or Loss on realisation will be transferred to Partner’s Capital Account

(D) Loan from a partner will be settled directly without transferring to Realisation

Account

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