Nature of Partnership Firm | Partnership Accounting | Theory of Accounting

Описание: Nature of partnership

Agreement Between Persons:

A partnership is formed through an agreement (written or oral) between two or more individuals to carry on a business.

Profit Motive:

The main goal is to earn profits and share them among the partners as per the agreement.

Mutual Agency:

Each partner acts as both an agent and a principal. One partner can bind the others by their actions done in the course of business.

Shared Responsibility:

Partners share the responsibilities, risks, and liabilities of the business. Generally, partners have unlimited liability.

Number of Partners:

Minimum: 2 people.

Maximum:

50 in most countries (like India under the Companies Act, 2013).

May vary by country and sector.

Legal Relationship:

A partnership is not a separate legal entity from its partners (unlike a corporation or company).

No Compulsory Registration (in most jurisdictions):

Partnerships can operate without being registered, though registration can offer some legal benefits.

📘 Types of Partnerships:
General Partnership: All partners share equal rights and responsibilities.

Limited Partnership (LP): Some partners have limited liability.

Limited Liability Partnership (LLP): Partners have limited liabilities and are not responsible for others’ misconduct.

This video will covers the following topic:
class 12 fundamentals of partnership firm
class 12 accountancy partnership chapter 1
reconstitution of partnership class 12
indian partnership act 1932 nature and definition
partnership act 1932 business law
importance of partnership deed
formation of partnership firm
conversion of partnership firm into company
accounting for partnership firms
partnership accounts class 12 chapter 1
accounting for partnership basic concepts class 12
Nature of partnership firm

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