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CHAPTER-2
FUNDAMENTAL OF PARTNERSHIP
PARTNERSHIP= According to section 4 of
Indian partnership Act,1932,”Partnership is a
relation between two or more persons who have
agreed to share profits and loss of a business
carried on by all or any of them acting for all
...
of Persons:Minimum-2 persons
Maximum-50 persons { according to section
464 of Indian Companies Act 2013 }

Essential Elements of Partnership
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Two or more persons
Agreement
Share of profit and loss
Mutual agency

Rights of a PARTNER:-

1
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2
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3
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4
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5
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Duties of Partners
To carry on the business with the greatest
common advantage
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To devoted time and attention to the business
of the partnership
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Not to assign his interest in the business to
any other person, unless with the consent of
all partners
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It also called “ARTICLES OF
PARTNERSHIP
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Name and address of the firm_________
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Name and address of the partners
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The type and nature of the business
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Interest on capital
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Drawings and interest on drawings
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Profit sharing ratio
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Salary of partners
8
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9
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10
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IMPORTANCE OF PARTNERSHIP DEED
Partnership deed and its registration is not compulsory
but it is always better to have the agreement writing fir
the following reasons:-

• To help is setting desputr
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• It regulates the powers of each partners
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Profit and loss of partnership will distributes
equally
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Interest on loan and advances allowed 6% p
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Interest on capital, salary or commission, interest
on drawings will not allowed

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