Accounting of Partnership firm- fundamentals (Part 1)
:: THE PATHSHALA CLASSES : Feedback :: Definition: As per Sec. 4 of Indian Partnership Act, 1932, “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for all.” Features/Characteristics of Partnership Ø Two or more persons Ø Agreement/ Partnership Deed Ø Existence of Business for Profit Motive Ø Sharing of Profit Ø Relationship of Principal and agent Ø Business carried on by all or any one of them acting for all. Ø No separate existence. Rights of a Partner Ø Right to share Profits and losses. Ø Right to take part in affairs of the business. Ø Right to be consulted Ø Right to inspect books of accounts. Ø Right to deny admission of new partner. Ø Right to claim joint ownership on the assets of the business. Ø Right to claim interest on loan given to the business. If not agreed, then @ 6% p.a. Ø Right to get reimbursed. Ø