Explain the fundamentals of accounting for partnership firms
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Partnership firms are established by joint venture of two or more people, who own the business, invest in it and share the profit/loss finally.
Investment can be either in terms of money or asset.
Based on the percentage of initial investment, profit is shared accordingly.
If there is a sleeping or silent partner, he just invests in the capital amount initially, but the efforts to run the firm successfully are taken care by the other working partners.
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