The Partnership Agreement Between Maneesh And Girish Provides That
Q2: What is partnership? What are its main features? Tell me. Answer: In accordance with Section 4 of the Partnership Act of 1932, the partnership is an agreement between two or more individuals who have agreed to share the profits or losses of a company borne by any or all of them. Individuals who have banded together to create the business are individually referred to as “partners” and “firms” and the name under which they operate is called “firm name.” Important Features of the Partnership Here are the important features of the partnership. 1.Two or more people: the partnership is an agreement between two or more people who unite for a common goal. While under the Partnership Act 1932, there is no cap on the number of partners in a business, under Section 11 of the Company Act 1956, the maximum number of partners should not exceed 10 for banking and 20 for each business. If the number of partners exceeds the aforementioned limit, the partnership becomes illegal. 2.Partnership status: partnership between partners should be supported by an act of partnership. A partnership agreement is an agreement between the partners they regulate when implementing the proposed transaction. The act can be oral or written. 3.Business: A partnership is formed to carry out a legal activity. Partnerships in the field of smuggling, marketing in the dark, etc., are illegal commercial activities and the partnership is therefore illegal. 4. Profit sharing: the profits or losses of a partnership company must be distributed to partners (in the absence of a partnership act) under the partnership agreement.
This is a very important feature of the partnership. If a group is formed for charitable purposes so as not to generate profits, that group is not considered a partnership. 5.Responsibility: The responsibility of a social society is unlimited and each partner is responsible for the company`s debts, whether individually and in conjunction with other partners to the third party. In addition, each partner is responsible, together with its partners, for all the actions of the partnership company. 6. Mutual representation: the partnership can be pursued by any or one of them acting on behalf of all. This means that all partners in a company have the same right to participate in the activities of the company or one of them acting on behalf of all. Each partner acts as an agent for others and binds others through its action and is bound by its action to others. Reason a) Interest on partner loans is allowed at 6% per annum, due to the lack of a partnership contract. b) Capital interest is not allowed due to the lack of an agreement on capital interest.
c) The profit is distributed equally because the interest rate has not been indicated. Q18: Himanshu withdraws 2500%. at the end of each month. The partnership decision provides that interest on subscriptions is calculated in the form of 12% per annum. Calculate interest on Himanshu`s subscriptions for the year ending December 31, 2013. Answer: Interest must be charged. Calculate interest on subscriptions, provided the book of accounts is closed each year on March 31, 2014. Answer: Q: Campbell Quilting Company provides blankets that it markets through a variety of department stores. It`s…
Q3: Rakhi and Shikha are partners in a company with capitals of 2.00,000 Rs or Rs 3.00,000. The company`s profit, which ended at the end of 2013-14, is Rs 23,200. Under the partnership agreement, they share the profit in their capital ratio after accepting a salary of 5,000 per month to Shikha and interest on the partner`s capital to the tune of 10% per year. During the year, Rakhi Rs withdrew 7,000 and Shikha Rs 10,000 for their personal use. You need to create an account and your partner`s equity accounts.