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Purpose of Financial Statements

A partner of ...

Question

A partner of a trading or non trading firm signs a Negotiable instrument liability incurs in ______.

A

the name of the firm.

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B

in the name of partner.

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C

both a & b.

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D

none of the above.

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Solution

The correct option is A the name of the firm.
A partner of a trading or non trading firm signs a Negotiable instrument liability incurs in the name of the firm. When a maker or holder of the negotiable instrument signs a document, it should be signed in the name of the firm. Signing negotiable instrument in the name of the partners is not valid.

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