Question

Introduction to partnership final account

Answer 1

The law governing partnership, which is guided by the partnership Act of 1890, in Nigeria defined partnership as “the relation which subsists between persons carrying on a business in common with the view of profit”. The number of persons, termed partners, who may form a partnership, is limited

to 20 except (a) in the case of: (i) Solicitors; (ii) Accountants iii) Members of a recognized Stock Exchange, and (b) in the case of banking business where the limit is ten (10) except that the number may go up to 20 if each partner has bound of trade authorization.

This Unit discusses types of partners that could be found in partnership arrangements, partnership deeds, liabilities of partners, and advantages of partnership, types of partnership and partnership accounts to be maintained by a serious partnership business.

Answer 2

The final accounts ofpartnership firm including basic concepts of accountin