PARTNERSHIP ACCOUNTS
PARTNERSHIP ACCOUNTS
A partnership is an agreement between two or more partners to manage and operate the activities of a business and thereby sharing the profits or losses equally.
Essential Features of Partnership
1. There must be an agreement between two or more persons and the persons must be competent to contract.
2. The maximum number of partners must be 10 in case of banking business and 20 in other cases. (Section 11 of Companies Act)
3. The purpose of the business should be earning of profits, and the profits should be shared equally among the partners, if there is no agreed profit-sharing ratio.
4. The business should be carried on by all or any one of them, acting for all.
Rights of Partner
1. Right to take part ...
Get NTA UGC/NET/SET/JRF Commerce Paper 2 - 2024, | 2023 Fully solved paper | 4th Edition, Includes 2023 Solved Papers | now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
