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in Accounting for Partnership – Basic Concepts by (25.6k points)
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Alim and Methew made a serious discussion about the possibilities of starting a bakery shop as a partnership firm. Alim pointed out several peculiar features that their business should have. Mathew insisted for a written partnership deed and put forward. some contents to be included in it. Imagine their discussion:

(a) Write two points raised by Alim. 

(b) Justify Mathew’s argument.

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Best answer

(a) 

1) Partnership is the relation between two or more persons. 

2) Partnership are governed by Indian Partnership Act, 1932. 

(b) Partnership deed is a written document containing the rules and regulations regarding the conduct of business. It contains.

  • Name and address of the firm 
  • Names and addresses of partners 
  • Duration of Partnership 
  • Nature of business Salary, commission etc. payable to partners 
  • Profit-sharing ratio

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