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Partnership features

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Partnership features

Posted by Divyanshi Tomar 5 years, 8 months ago

CBSE > Class 12 > Accountancy

1 answers

Yogita Ingle 5 years, 8 months ago

According to the Indian Partnership Act 1932, “Partnership between two or more persons who have agreed to share the profits of the business carried on by all or any of them acting for all”.

Features of partnership are

Minimum two members are required to form a partnership firm and maximum 20 members are allowed. However, only 10 members are allowed in a banking business. According to section 464 of the Companies Act 2013, the number of persons in any association or partnership shall not exceed one hundred subject to the limit prescribed in the rules. In Rule 10 of the Companies Miscellaneous Rules 2014, no association or partnership shall be formed, consisting of more than 50 persons. Hence, the limit is now 50 partners to prescribe maximum number of partners in a firm but the prescribed number cannot be more than 100.
Formation: The partnership form of business organisation is regulated by the Indian Partnership Act 1932.
Agreement: The partners come to a mutual agreement to form a verbal or written partnership in. This document is known as partnership deed.
Lawful business: A partnership may commence any lawful business activity. The partnership shall be formed only to perform legal business activity. Any robbery or smuggling between any two partners shall not be considered as partnership.
Profit sharing: As per the agreement share ratio of the profit, the partners of the partnership firm share the profit of the firm. If the agreement does not specify the share ratio of the profit, the profit is divided equally among all the members.

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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Posted by Mohd Aman Mansoori 1 year, 4 months ago

CBSE > Class 12 > Accountancy

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Q. 120. Risha and Nisha were partners. The partnership deed provides: (1) That the accounts be balanced on 31st December each year. (ii) The profits be divided as follows: Risha one-half, Nisha one-third and carried to Reserve account one-sixth. (ii) That in the event of death of a partner, her executor will be entitled to the following: (a) The capital to her credit at the date of death. (b) Her proportion of profit to date of death based on the average profits of the last three completed years. (c) Her share of goodwill based on three year's purchase of the average profits for the three preceding completed years. On 31st December, 2020 the Trial Balance was as under: Particulars Risha's Capital Nisha's Capital Reserves Bills Receivables Investments Cash Creditors Dr. (3) Cr. (3) 90,000 60,000 30,000 50,000 40,000 1,10,000 20,000 2,00,000 2,00,000 The profits for the three years were: 2018 ₹4,200; 2019 ₹3,900 and 2020 ₹4,500. Nisha died on 31st May, 2021. Draw up the deceased Partner's Capital A/c and Executor's A/c. Ans. Balance due to Nisha's Executor's ₹77,740.]

Posted by Srishti Arya 1 year, 2 months ago

CBSE > Class 12 > Accountancy

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Posted by Mahi . 1 year, 4 months ago

CBSE > Class 12 > Accountancy

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Posted by Munni Lal 1 year, 5 months ago

CBSE > Class 12 > Accountancy

0 answers

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Posted by Palak Sharma 1 year, 4 months ago

CBSE > Class 12 > Accountancy

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Posted by Shashank Shukla 1 year, 4 months ago

CBSE > Class 12 > Accountancy

0 answers

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