Partnership: Fundamental -01
ACCOUNTING FOR PARTNERSHIP Section 4 of Partnership Act 1932 “Partnership is a relation between persons who have agreed to share the profits of a lawful business carried on by all or any of them acting for all”. Persons who have entered into partnership with one another are individually called ‘partners’ and collectively called ‘firm’. The name under which the business is carried, is called the ‘firm’s name’. A partnership firm has no separate legal entity, apart from the partners constituting it. Thus, the essential features of partnership are: 1. Two or More Persons 4. Mutual Agency 2. Agreement 5. Sharing of Profit 3. Business ...