What is the conclusion of partnership deed for school project to class 11
Answers
Explanation:
CONCLUSION:
According to the above definition of a partnership firm, we can describe the following characteristics of a partnership firm:-
There should be a proper contract between the partners, which shall state all the terms and conditions of the partnership firm. The agreement clearly will show the rights and liabilities of the partners, capital to be employed by the partners, the interest on money of the partners, the salary and other remuneration to the partners, the admission of new partners, the dissolution of the partnership firm, etc.
Nothing is definite in the Indian Partnership Act in respect of several partnership firms. Still, as per the Company Act, there should not be more than ten persons in the case of banking business and 20 persons in other businesses. Otherwise, the partnership shall be deemed illegal.
The partnership firm should be formed for doing business, and the aim of the business firm should be to earn a profit. For example, Mr. X and Mr. Y agreed to go on a pleasure trip and agreed to divide the expenditure 50:50; it is not a business. Hence, it will not be treated as a partnership firm.
The profit should be divided between the partners after the end of the financial year as per the agreement. The benefit cannot be carry forwarded in the case of the partnership firm.
The business can be carried out by one partner or a few partners or by all.....