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Answer:- Any two of the following: 1) There should be two or more persons 2) There should be an agreemtn 3) There should be a lawful business 4) There should be sharing of the profits of business 5) There should…
Answer:- Individually:- Partners Collectively:- Firm
No, there is no need to enter into Partnership Deed because the activities are not in the nature of business but charity. Thus, an essential component of business that it should be carried on with the purpose to earn profits,…
Answer:- i) Interest on Capital will not be allowed (paid) ii) Interest on drawings will not be charged iii) Interest on loan from a partner will be allowed (Paid) @ 6% p.a. iv) profit/Loss will be shared equally.
Answer:- Yes, if the Partnership Deed so provides.
Answer:- Partnership Deed is a useful document because: i) It regulates the rights, duties, and liabilities of each partner. ii) If any dispute arises between/among the partners, then it can be settled on the basis of the Partnership Deed as…
Answer:- No, it is not compulsory but is preferable to have a Partnership Deed.
Answer:- Aman’s Claim is not valid as in the absence of a partnership Deed, salary to partners is guided by the Indian Partnership Act, of 1932. The Act does not allow the payment of salary to a partner.
Answer:- No Ramesh’s Claim is not valid as in the absence of a partnership Deed, profit sharing is guided by the Indian Partnership Act, 1932. The act provides for sharing profits equally.
Answer:- Net Profit means profit earned by the firm from its Operating and Non-operating Activities. It is ascertained by preparing Profit and Loss Account.