Introduction to partnership fundamental .pptx

Fundamental of Accounting

1. SESSION 2024-25 CLASS 12 TH | ACCOUNTANCY FUNDAMENTALS OF PARTNERSHIP CHAPTER 1 PART 1 By H.K. Sir

2. According to Section 4 of the Partnership Act, 1932 Meaning: Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. PARTNERSHIP FUNDAMENTALS Minimum Partner 2 Maximum partner 50 as per Companies Act, 2013 Essential condition of Partnership : Business + profits + Mutual Agency

3. Essential Features of Partnership Two or more persons Agreement (Oral or Written) Lawful Business Sharing of profits Principle and Agent relationship No separate existence (from legal point of view) Business can be carried on by all or any of them acting for all

4. Rights of a Partner Right to participate in management Right to inspect books of account and have a copy of it Right to share profits or losses Right to received interest on his/her loan to the firm A partner has the right not to allow the admission of a new partner After giving proper notice a partner has right to retire from the firm.

5. Partnership Deed A partnership deed is an agreement between the partners of a firm that contains the terms and conditions of partnership. It is not mandatory It is also called ‘Articles of Partnership’ It contains the following points : Name and Address of the firm and Partners Nature of business, Capital Contribution, Profit sharing ratio, Accounting Period, Duration of partnership & settlement of disputes Interest on capital, salaries to partners, commission, etc. Rights and Duties of Partners

6. IMPORTANT POINTS TO BE REMEMBERED In Partnership the liability of all partners are unlimited. Registration of partnership firm is not compulsory. Partnership is separate business entity from Accounting point of view. LLP (LIMITED LIABILITY PARTNERSHIP) LLP Act, 2008 Liability of partners are limited There is no limit on maximum no. of partners Mix of Partnership and Company

7. KEEP YoUR LOVE & SUPPORT Thanks…..