Chapter – 1st ( Introduction Of Partnership )

According to Section-4 of the Indian participants 
1932:

Partnership is the relation between two or more person who have agreed to share the profits of a business carried on by all or any one of them acting for all.

features of partnership:

1. There must be at least two person to form a valid partnership. the maximum number of partners can't axceed the number of partners prescribed by companies rules, 2013 which is 50.

2. Partnerships comes into existence by an agreement ( the written or oral ) among the partners. the written agreement among the partners is called partnership deed.

3. A partnership can be formed for the purpose of carrying on legal business.

4. An agreement between the partners must be aimed at sharing the profit specific provision in the dealer allows some partners not to bear losses.

5. A partnership can be carried on by all or any one of them acting for all.

6. Agent - principal relationship exist between partners.

Partnership deed :

The partnership deed is a written agreement among the partners which contains the terms of agreement.

A partnership deed should contain the following points :

1. NAME AND ADDRESS OF THE FIRM AS WELL AS PARTNERS

2. NAME AND ADDRESS OF OF THE PARTNERS.

3. NATURE AND PLACE OF THE BUSINESS.

4. TERMS OF PARTNERSHIP.

5. CAPITAL CONTRIBUTION BY EACH PARTNER.

6. INTEREST ON CAPITAL.

7. DRAWINGS AND INTEREST ON DRAWINGS.

8. PROFIT SHARING RATIO.

9. Interest on LOAN

10. PARTNER SALARY / COMMISSION etc.

11. METHOD FOR VALUATION OF GOODWILL AND ASSETS.

12. ACCOUNTING PERIOD OF THE FIRM AND DURATION OF PARTNERSHIP

13. RIGHTS AND DUTIES OF PARTNERS How DISPUTE WILL BE       SETTLED.

14. DECISION TAKEN IF SOME PARTNER BECOME INSOLVENT.

15. OPENING OF BANK ACCOUNT - WHEREAS IT WILL BE IN THIS     NAME OF FORM OF PARTNERS.

16. RULES TO BE FOLLOWED IN CASE OF ADMISSION & SETTLEMENT OF ACCOUNTS OR RETIREMENT OR DEATH OF A PARTNER.