Question: Which accounting standard governs the treatment of partnership accounts?
Options:
AS 1
AS 2
AS 3
AS 26
Correct Answer: AS 26
Solution:
AS 26 deals with the accounting for intangible assets, which includes goodwill in partnership accounts.
Which accounting standard governs the treatment of partnership accounts?
Practice Questions
Q1
Which accounting standard governs the treatment of partnership accounts?
AS 1
AS 2
AS 3
AS 26
Questions & Step-by-Step Solutions
Which accounting standard governs the treatment of partnership accounts?
Step 1: Understand what partnership accounts are. These are financial records that show the financial position and performance of a partnership business.
Step 2: Learn about accounting standards. These are rules that guide how financial transactions should be recorded and reported.
Step 3: Identify the relevant accounting standard for partnerships. In this case, AS 26 is the standard that applies.
Step 4: Know what AS 26 covers. It deals with intangible assets, which are non-physical assets like goodwill.
Step 5: Recognize that goodwill is important in partnership accounts because it represents the value of the partnership beyond its physical assets.
No concepts available.
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