Types of Partnership deed

What is Partnership? A partnership is a form of business where two or more-person carrying a business or any of them acting for them. What is a Partnership Deed? Partnership Deed is the agreement made between two individuals who have agreed to share the profits of a business that has been carried on by all … Read more

Types of partnership

The types of partnership are as below: Active Partner: Active partner is also named as a working partner. He takes active part in the management and running of the business. He also invests in the partnership business. Sleeping Partner: Sleeping partner is one who: Invest in the business. Shares gains and losses of the business. … Read more

Procedure to open books of partnership

At the time of formation of partnership, each partner contributes his capital either in the form of cash or non-cash. Separate accounts of capital are opened to record the investment of each partner. The partner can invest in the business in any of the following ways. By contributing cash. By contributing non-cash assets. By combining … Read more

What is Partnership Deed?

What is a Partnership Deed? – Meanings The document which contains terms and conditions of partnership is known as Partnership Deed. In the absence of an agreement, the partnership Act is applied, However, the act leaves it to the discretion of partners. The written agreement between partners will be helpful in case of disputes between … Read more

What are reserves in partnership?

Definition: A Reserve, by definition, is that part of the profit that is not distributed among the business’s owners but retained in the business. Explanation: If the entire profit made by a firm is credited to partner’s current accounts, the partners become entitled to withdraw it, in cash, from the firm’s coffers. This can seriously … Read more