Partnership Accounts | Lecture 16 | JKSSB ACCOUNTS ASSISTANT EXAM | CA MOHAMAD LATEEF (AIR-35 ) скачать в хорошем качестве

Partnership Accounts | Lecture 16 | JKSSB ACCOUNTS ASSISTANT EXAM | CA MOHAMAD LATEEF (AIR-35 )

Partnership Accounts | Lecture 16 | JKSSB ACCOUNTS ASSISTANT EXAM | CA MOHAMAD LATEEF (AIR-35 ) Link of Book:- https://drive.google.com/file/d/10iXL... Website :- www.eactclasses.com Link for 1st lecture of Partnership:-    • Class 12th Accountancy | Partnership | Lec...   Link for 2nd lecture of Partnership:-    • Class 12th Accountancy | Partnership | Lec...   Contact No. +91-9711374943 We have learnt about the preparation of final accounts for a sole proprietary concern. As the business expands, one needs more capital and larger number of people to manage the business and share its risks. In such a situation, people usually adopt the partnership form of organisation. When two or more individuals engage in enterprise as co-owners, the organization is known as a partnership. In India, we have a definite law that covers all aspects and functioning of a partnership, “The Indian Partnership Act 1932”. The act defines a partnership as “the relation between two or more persons who have agreed to share the profits from a business carried on by either all of them or any of them on behalf of/acting for all”. The entity is collectively called a “Partnership Firm” and all the individual members are the “Partners”. Thus, the essential features of partnership are: 1. Two or More Persons: In order to form partnership, there should be at least two persons coming together for a common goal. In other words, the minimum number of partners in a firm can be two. There is however, a limit on their maximum number. By virtue of Section 464 of the Companies Act 2013, the Central Government is empowered to prescribe maximum number of partners in a firm but the number of partners cannot be more than 100. The Central government has prescribed the maximum number of partners in a firm to be 50. 2. Agreement: Partnership is the result of an agreement between two or more persons to do business and share its profits and losses. The agreement becomes the basis of relationship between the partners. It is not necessary that such agreement is in written form. An oral agreement is equally valid. But in order to avoid disputes, it is preferred that the partners have a written agreement. 3. Business: The agreement should be to carry on some business. Mere co-ownership of a property does not amount to partnership. For example, if Rohit and Sachin jointly purchase a plot of land, they become the joint owners of the property and not the partners. But if they are in the business of purchase and sale of land for the purpose of making profit, they will be called partners. 4. Mutual Agency: The business of a partnership concern may be carried on by all the partners or any of them acting for all. This statement has two important implications. First, every partner is entitled to participate in the conduct of the affairs of its business. Second, that there exists a relationship of mutual agency between all the partners. Each partner carrying on the business is the principal as well as the agent for all the other partners. He can bind other partners by his acts and also is bound by the acts of other partners with regard to business of the firm. Relationship of mutual agency is so important that one can say that there would be no partnership, if the element of mutual agency is absent. 5. Sharing of Profit: Another important element of partnership is that, the agreement between partners must be to share profits and losses of a business. 6. Liability of Partners: Each partner is liable jointly with all the other partners and also severally to the third party for all the acts of the firm done while he is a partner. Not only that the liability of a partner for acts of the firm is also unlimited. This implies that his private assets can also be used for paying off the firm’s debts. Partnership Deed Partnership comes into existence as a result of agreement among the partners. The agreement can be either oral or written. The Partnership Act does not require that the agreement must be in writing. But wherever it is in writing, the document, which contains terms of the agreement is called ‘Partnership Deed’. It generally contains the details about all the aspects affecting the relationship between the partners including the objective of business, contribution of capital by each partner, ratio in which the profits and the losses will be shared by the partners and entitlement of partners to interest on capital, interest on loan, etc. The clauses of partnership deed can be altered with the consent of all the partners. The deed should be properly drafted and prepared as per the provisions of the ‘Stamp Act’ and preferably registered with the Registrar of Firms. Contents of the Partnership Deed The Partnership Deed usually contains the following details: • Names and Addresses of the firm and its main business; • Names and Addresses of all partners; #Partnership #jkssb #Accounts_Assistant