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Adjustment in Partner's Capital A/c

A Is One Who ...

Question

A ______________ Is One Who Allows the Use of His/her Name by a Firm, but Does Not Contribute to Its Capital

A

Sleeping partner

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B

Secret partner

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C

Active partner

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D

Nominal partner

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Solution

The correct option is D
Nominal partner

Nominal partner
A nominal partner is one who does not have interest in the trade or its profits. But allows the use of his or her name in the firm.

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are partners in a firm. They do not have a Partnership Deed. At the end of the first year of the commencement of the firm, they have faced the following problems:

A

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Adjustment in Partner's Capital A/c

Standard XII Accountancy

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