Class 12 accountancy accounting for partnership firm-fundamental notes
Accounting for Partnership Firm...Short & Easy Notes for Board Exam #1. what is Partnership? What are its Characteristics? => As such mentioned in Section-4 of the Indian Partnership Act 1932, when two or more person are ready to start a legal business, carried by all or any of them acting for all. The share of profit are distributed among themselves in agreed ratio. The members of the firm individually called Partners and jointly called Firm. Following are its Characteristics; i. There should be minimum 2 and maximum 50 partners. ii. There should be an agreement between the partners, it may be written or oral. iii. There should be a legal business. iv. Partnership does not have a separate entity. v. The liabilities of partners are unlimited. vi. No transfer of interest without the consent of any other partners. vii. Distribution of profit are essential. #2. What is Partnership deed? What are its essential elements? => Written agreement between the partners are called Partner...