Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Commerce Guide Pdf Chapter 5 Hindu Undivided Family and Partnership Text Book Back Questions and Answers, Notes.
Tamilnadu Samacheer Kalvi 11th Commerce Solutions Chapter 5 Hindu Undivided Family and Partnership
11th Commerce Guide Hindu Undivided Family and Partnership Text Book Back Questions and Answers
EXERCISE
I. Choose the Correct Answer
Question 1.
The firm of Hindu Undivided Family is managed by whom?
a. Owner
b. Karta
c. Manager
d. Partner
Answer:
b. Karta
Question 2.
In the firm of Hindu Undivided Family,how one gets the membership?
a. By Agreement
b. By Birth
c. By Investing Capital
d. By Managing
Answer:
b. By Birth
Question 3.
The members in the joint Hindu family are called ……………
a. Karta
b. coparceners
c. generations
d. partners
Answer:
b. coparceners
Question 4.
‘Only the male members in the family get the right of inheritance by birth’ as …………………
a. Hindu law
b. Mitakshara Law
c. Dayabhaga law
d. None of these
Answer:
b. Mitakshara Law
Question 5.
A partnership is formed by ……………….
a. agreement
b. relationship among persons
c. the direction of government
d. Friendship
Answer:
a. agreement
Question 6.
Registration of partnership is ……………….
a. compulsory
b. optional
c. not necessary
d. none of the above
Answer:
b. optional
Question 7.
A temporary partnership which is formed to complete a specific job doing a specified period of time is called ……………..
a. Partnership-at-will
b. Particular partnership
c. Limited Partnership
d. Joint Venture
Answer:
Question 8.
The partnership deed also called …………………….
a. Articles of Association
b. Articles of Partnership
c. Partnership Act
d. Partnership
Answer:
b. Articles of Partnership
Question 9.
A partnership is registered with ………………………
a. Registrar of Companies
b. Registrar of Co-operatives
c. Registrar of Firms
d. District Collector
Answer:
c. Registrar of Firms
II. Very Short Answer Questions
Question 1.
Who is called KARTA?
Answer:
All the affairs of a Joint Hindu Family are controlled and managed by one person who is known as ‘Karta’ or ‘Manager’.
Question 2.
What are the two schools of Hindu law?
Answer:
- Dayabhaga is prevalent in Bengal and Assam.
- Mitakshara is prevalent in the rest of the country.
Question 3.
Who is called a Partner?
Answer:
The persons who enter into partnership are individually called ‘Partners’.
Question 4.
Who is a Sleeping partner?
Answer:
The partner contributes capital and shares in the profits or losses of the firm but does not take part in the management of the business. He is not known as a partner to the outsiders. The liability of the inactive partner is also unlimited.
Question 5.
Who is a Minor?
Answer:
Under the Indian Majority Act, the person who has not completed 18 years of age is a minor.
Question 6.
How many types of Dissolution?
Answer:
The Joint Hindu Family Business is a distinct form of organization peculiar to India. Joint Hindu Family Firm is created by the operation of law. It does not have any separate and distinct legal entity from that of its members.
III Short Answer Questions
Question 1.
What is the meaning of Joint Hindu Family Business?
Answer:
When two or more families agree to live and work together, invest their resources and labour jointly and share profits or losses together, then it is known as composite family or Joint Hindu Family business.
Question 2.
Write any 3 features of HUF.
Answer:
- It is controlled and managed under the Hindu law
- All the affairs of a Joint Hindu Family are controlled and managed by one person known as ‘Karta’ or‘Manager’.
- In an HUF firm even a new Bombay can be a coparcener.
Question 3.
Explain the nature of the liability of Karta.
Answer:
Karta is not only liable to the extent of his share in the business but his separate property is equally attachable and the amount of debt can be recovered from his personal property.
Question 4.
What is the meaning of Coparceners?
Answer:
According to HUF, a coparcener is a person who acquires a right in the ancestral property by birth and a person who has a right to demand partition in the HUF property.
Question 5.
Define Partnership.
Answer:
According to Prof. Haney, “The relations which exist between persons, competent to make contracts, who agree to carry on a lawful business in common with a view to private gain”.
Question 6.
What are the minimum and maximum number of members in the partnership concern?
Answer:
The minimum number of members is two. Maximum is restricted to 10 in the case of banking business and to 20 in all other cases.
Question 7.
What is the meaning of Partnership Deed?
Answer:
Through a partnership agreement need not necessarily be in writing, it is important to have a written agreement in order to avoid misunderstandings; it is desirable to have a written agreement. A carefully drafted partnership deed helps in ironing out differences which may develop among partners and in ensuring the smooth running of the partnership business. It should be properly stamped and registered.
Question 8.
Who is called a Secret partner?
Answer:
Secret Partners are those whose connections with the firm are not known to the public. They will take part in the affairs to the business without disclosing their status in the firm.
Question 9.
What is meant by Joint and Several Liability?
Answer:
Every partner is jointly and severally liable for all acts of the firm. It means that in case the assets are inadequate for meeting the claims of creditors, even their personal properties should be made available. The creditors can recover their claims from all the partners.
IV. Long Answer Questions
Question 1.
What is the implied authority of Karta?
Meaning:
The head of the Joint Hindu Family whose liabilities are unlimited is known as KARTA. Karta is the senior-most male member of the family.
Implied Authority:
in a joint Hindu Family firm, only Karta is entitled to deal with outsiders. He has the implied authority to enter into a contract for debts and pledge the property of the firm for the ordinary purpose of the businesses of the firm. Karta has the power to borrow loans.
Question 2.
Can a minor be admitted in the Joint Hindu Family business. Why?
Answer:
In a partnership, the minor cannot become a co-partner though he may be admitted to the benefit of the partnership. In a Joint Hindu Family firm, even a newborn baby can be a partner. The membership of the family can be acquired only by birth. As soon as the male child is born in the family, that child becomes a member.
Question 3.
What are the contents of the Partnership Deed?
Answer:
The following are the main contents of the partnership deed.
- Name of the Firm.
- Nature of the proposed business.
- Duration of the partnership business whether it is to be run for a fixed period of time or whether it is to be dissolved after completing a particular venture.
- The capital is to be contributed by the partners. It must be remembered that capital contribution is not necessary to become a partner for one who contributes his organising power, business acumen, managerial skill, etc., instead of capital.
- The amount that can be withdrawn from the firm by each partner.
- The ratio in which the profits or losses are to be shared. If the profit sharing ratio is not specified in the deed, all the partners must share the profits and bear the losses equally.
Question 4.
Explain the types of dissolution of the partnership firm.
Answer:
Dissolution of Partnership is different from the dissolution of the partnership firm. It is due to the fact that when the jurally relation present between all partners, comes to an end, it is known as dissolution of the firm, however, when any one of the partners becomes incapacitated, then the partnership between the concerned partner and other partners of the firm comes to an end, but the firm may continue to operate if other partners desire so.
Question 5.
Write any three differences between Dissolution of Partnership and Dissolution of Firm.
Answer:
|
Nature of Difference |
Dissolution of Partnership |
Dissolution of Firm |
| Meaning | Dissolution of a partnership refers to the discontinuance of the relationship between the partner and other partners of the firm. | Dissolution of the firm implies that the entire firm ceases to exist, including the relationships among all the partners. |
| Nature | Voluntary | Voluntary or compulsory |
| Business | The business of the firm continues as before | The business of the firm comes to an end. |
Firms along with the necessary registration fee.
Question 6.
Write the procedure for Registration of a Firm.
Answer:
A statement should be prepared to state the following particulars.
- Name of The firm.
- The principal place of business.
- Name of other places where the firm carried on the business.
- Names and addresses of all the partners.
- The date on which .each partner joined the firm.
- The duration of the firm.
This statement signed by all the partners should be produced to the Registrar of Firms along with the necessary registration fee of Rs.3. Any change in the above particulars must be communicated to the Registrar within 14 days of such alteration.
11th Commerce Guide Hindu Undivided Family and Partnership Additional Important Questions and Answers
I. Choose the Correct Answer
Question 1.
……………. is that form of business organisation which is ow’ned and controlled by a single individual
(a) Sole trading concern
(b) Partnership firm
(c) Joint Hindu family business
(d) Joint-stock companies
Answer:
(a) Sole trading concern
Question 2.
A Partner who participates only in profit is ……………………
a. Sleeping Partner
b. partner in profit only
c. Minor partner
d. Nominal partner
Answer:
b. partner in profit only
Question 3.
When his business assets are not sufficient to pay off the business debts, he has to pay from his personal property.
(a) Unlimited Liability
(b) Flexibility
(c) Small capital
(d) Limited Liability
Answer:
(a) Unlimited Liability
Question 4.
A partner is entitled to interest at the rate of ………………. percent per annum on all advances of money made by him as a loan.
a. 5
b. 6
c. 7
d. 8
Answer:
b. 6
Question 5.
Which of the following is under non-corporate enterprise?
(a) Government
(b) Cooperative
(c) Company
(d) Sole trading concern
Answer:
(d) Sole trading concern
II. Very Short Answer Questions
Question 1.
In Hindu Undivided Family how is the liability of Karta?
Answer:
In Hindu Undivided Family the liability of Karta is unlimited.
Question 2.
Mention any four kinds of Partners?
Answer:
- Active partner
- Sleeping partner
- Nominal partner
- Partner in profits only
Question 3.
What is the méaning of Ancestral Property?
Answer:
Property inherited upto 4 generations of male lineage(i.e., father, grandfather, etc.) is called ancestral property. The right to a share in such a property accrues by birth itself.
Question 4.
Write any two types of dissolution through court?
Answer:
- When a partner becomes of unsound mind.
- Permanent incapacity observed in its formation, management, or in its closure.
Question 5.
What is a limited liability partnership(LLP)?
Answer:
LLP is available in countries like the USA, Singapore, Thailand, and the U.K. It is very popular in the service sector and in small-scale business enterprises. E.g: Chartered Accountants, Lawyers, Architects, Engineers, and Doctors.
III. Short Answer Questions
Question 1.
What is unlimited liability?
Answer:
The liability of a sole trader is unlimited. Since, apart from his business assets, even his private properties are also available for satisfying the claims of creditors. Hence, creditors may give more loans because they can get back the loan from the personal properties of sole traders.
Question 2.
If it is possible to the dissolution of Joint Hindu Family business?
Answer:
Yes. But it can be dissolved only at the will of all the members of the family. Any single member has no right to get the business dissolved. It should be done through a mutually agreed partition deed registered by paying proper stamp duty meant for it.
IV. Long Answer Questions
Question 1.
What are the rights of a partner? (Any five)
Answer:
1. Right to take part in business: Every partner has a right to take part in the management of the business.
2. Right to be consultant: Every partner has the right to be consulted in all matters concerning the firm. The decision of the majority will prevail in all the routine matters.
3. Right of access to books, records and documents: Every partner has the right of access to all records and books of accounts, and to examine and copy them.
4. Right to share profit: Every partner is entitled to share the profits in the agreed ratio. If no profit-sharing ratio is specified in the deed, they must be shared equally.
5. Right to receive interest: A partner has the right to receive interest on loans advanced by him to the firm at the agreed rate, and where.no rate is stipulated, interest @ 6% p.a. allowed.
Question 2.
Briefly explain the Rights of partners. (Any 5)
Answer:
The mutual rights and obligations are usually stated in the partnership deed.
1. Right to take part in business: Every partner has a right to take part in the management of the business.
2. Right to be consulted: Every partner has the right to be consulted in all matters concerning the firm. The decision of the majority will prevail in all the routine matters. But, where the matter is of fundamental importance such as the admission of a new partner, change in the nature of the business, etc., the decision must be unanimous.
3. Right of access to books, records, and documents: Every partner has the right of access to all records and books of accounts, and to examine and copy them.
4. Right to share profit: Every partner is entitled to share the profits in the agreed ratio. If no profit sharing ratio is specified in the deed, they must be shared equally.
5. Right to receive interest: A partner has the right to receive interest on loans advanced by him to the firm at the agreed rate, and where no rate is stipulated, interest @ 6% p.a. allowed.
Question 3.
Briefly explain the duties of the Partners. (Any 5)
Answer:
- Duty to carry on business: Every partner has to carry on the business of the firm to the maximum advantage of all the partners.
- Duty to be true: Every partner must be true, just, and faithful to one another. There must be an utmost good faith and fair dealings.
- Duty to render true accounts: A partner is bound to keep and render true and full accounts of the partnership. He must produce relevant vouchers for the expenses incurred by him and hand over to the firm all amounts which have come into his hands as a partner.
- Duty to indemnify the firm: Every partner must indemnify the firm for any loss caused by his fraud or wilful negligence in the conduct of the business.
- Duty to share the loss: Every partner is bound to share the losses in the agreed ratio in the absence of an agreed ratio, it must be borne equally.
Question 4.
Explain the types of Partnerships.
Answer:
1. Partnership at will:
Partnership formed to carry on business for an undefined period is called partnership at will. It is to be dissolved when a partner gives notice of his intention to dissolve the partnership. Thus this type of partnership continues its business activities as long as there are mutual cooperation and confidence among partners. Since it comes to an end at the will of any partner on his giving notice, it is called partnership at will.
2. Partnership for a fixed term:
Where a partnership is formed for a definite period of time, it is known as a partnership for a fixed term. The partnership for a fixed term comes to an end on the expiry of the stipulated period. But if the business is continued even after the original fixed period, it automatically becomes a partnership at will. As such it will be terminated at the will of any partners, giving notice of his intention to do so.
3. Particular partnership:
When a partnership is formed to carry on a particular venture or a business of temporary nature, it is called a particular partnership. Such a firm lasts so long as the business agreed upon is not completed. In other words, it comes to an end on the completion of the particular venture. If such a firm is not dissolved and it begins to undertake new activities not originally contemplated, the rights and obligations of the partners continue to be the same as in the original partnership and it will continue till a partner gives notice of his intention to dissolve the firm.
Question 5.
Limited Liability Partnership (LLP).
Answer:
Limited Liability Partnership is very popular in the service sector and in small-scale business enterprises. Limited liability partnership means for paying the debts of the firm only the assets of the business will be utilized and not the personal properties.
It is prevalent among popular professionals such as Cost Accountants, Company Secretaries, Chartered Accountants, Lawyers, Architects, Engineers, and Doctors. Limited Liability Partnership is available in countries like U.S.A, Singapore, Thailand, and the U.K. It came into existence in India in 2008.
Question 6.
What is meant by Mitakshara Law?
Answer:
Mitakshara is one of the schools belonging to Hindu law. The Mitakshara is a legal treatise on inheritance, written by Vijnaneshwara a scholar in the Western Chaiukya court in the 12th century. It became one of the most influential texts in Hindu law, and its principles regarding property distribution, property rights, and succession are still in practice across most of India except for West Bengal and Assam where the Dayabhaga system is practiced.
A salient feature is the principle of division of ancestral property held by. the Hindu joint family. Partition of such landholding among offsprings is possible even with the father still living, unlike the Dayabhaga system. Inheritance is based on the principle of propinquity i.e.‘the nearest in blood relationship will get the property. The system of devolution of property is by survivorship. The share of coparceners in the joint family property is not definite or ascertainable, as their shares are fluctuating with births and deaths of the coparceners.
Question 7.
What is meant by Dayabhaga Law?
Answer:
The Dayabhaga is a Hindu law treatise written by which primarily focuses on inheritance procedure. The Dayabhaga was the strongest authority in Modern British Indian courts in the Bengal region of India, although this has changed due to the passage of the Hindu Succession Act of 1956 and subsequent revisions to the act. Based on Jimutavahana’s criticisms of the Mitaksara, it is thought that his work is precluded by the Mitaksara.
Question 8.
What is meant by Dissolution of Partnership?
Answer:
Dissolution of partnership means the termination of the original partnership agreement. A partnership is dissolved by the insolvency, retirement, expiry, or completion of the term of the partnership. The business will continue after the dissolution of the partnership.
It takes in the following forms:
- Change in the existing profit sharing ratio
- Admission of a partner.
- Retirement or Death of a partner.
- Insolvency of a partner.
- Expiry of the term of the partnership.
- Completion of the specified venture.
- Dissolution by agreement.