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Why It is Considered Desirable to Make the Partnership Agreement in Writing. - Accountancy

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प्रश्न

Why it is considered desirable to make the partnership agreement in writing.

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उत्तर

Partnership agreement may be oral or written. It is not compulsory to form partnership agreement in writing under the Partnership Act, 1932. However, written partnership deed is desirable than oral agreement as it helps in avoiding disputes and misunderstandings among the partners. Also, it helps in settling disputes (as the case may be) among the partners, as written partnership deed can be referred to anytime. If written partnership deed is duly signed and registered under Partnership Act, then it can be used as evidence in the court of law.

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Nature of Partnership
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पाठ 2: Accounting for Partnership : Basic Concepts - Questions for Practice [पृष्ठ ९६]

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एनसीईआरटी Accountancy - Not-for-profit Organisation and Partnership Accounts [English] Class 12
पाठ 2 Accounting for Partnership : Basic Concepts
Questions for Practice | Q 2 | पृष्ठ ९६

संबंधित प्रश्‍न

What are the partnership's chief characteristics? Explain.


Discuss the main provisions of the Indian Partnership Act, 1932 that are relevant to partnership accounts if there is no partnership deed.


Explain why it is considered better to make a partnership agreement in writing.


Azad and Benny are equal partners. Their capitals are Rs 40,000 and Rs 80,000, respectively.After the accounts for the year have been prepared it is discovered that interest at 5% p.a. as provided in the partnership agreement, has not been credited to the capital accounts before distribution of profits. It is decided to make an adjustment entry at the beginning of the next year. Record the necessary journal entry.


Why it is considered desirable to make the partnership agreement in writing.


Explain why it is considered better to make a partnership agreement in writing.


Choose the appropriate alternative from the given options:

Mohit and Rohit were partners in a firm with capitals of ₹ 80,000 and ₹ 40,000 respectively. The firm earned a profit of ₹ 30,000 during the year. Mohit's share in the profit will be:


According to which Section of the Indian Partnership Act 1932 partnership is defined as 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'?


What are the essential features of partnership are ______?


Consider the following statement

Statement 1: "Each partner carrying on the business is the principal as well as the agent for all the other partners."

Statement 2: There exists a relationship of mutual agency between all the partners.


The persons who have entered into partnership are individually known as ______.


Following are essential elements of a partnership firm except:


Ram and Shyam are equal partners in a partnership. They decided to change their ratio as 2 : 1. On that date, general reserve appeared in the books as ₹ 30,000. What amount of reserve will be transferred to Shyam's Capital Account?


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