Provisions of the partnership act, Financial Accounting

Provisions of the Partnership Act

In the event of absence of a partnership agreement/deed or in the event of ambiguity therein, the provisions to the partnership Act will apply.  The provisions state that, unless the partnership deed indicates otherwise,

  • Every partner has a right to take part in the conduct of business;
  • All profits/losses are to be shared equally;
  • No interest on capital is to be allowed;
  • No partner is entitled to a salary;
  • No interest on drawings is to be charged;
  • 6% per annum is to be allowed on amounts contributed by each partner exceeding the agreed capital amounts;
  • Normal business decisions can be taken by a majority vote;
  • Major business decisions e.g. major business changes must obtain the full consent of all partners
Posted Date: 12/11/2012 5:45:03 AM | Location : United States







Related Discussions:- Provisions of the partnership act, Assignment Help, Ask Question on Provisions of the partnership act, Get Answer, Expert's Help, Provisions of the partnership act Discussions

Write discussion on Provisions of the partnership act
Your posts are moderated
Related Questions
Q. What do you mean by Bankruptcy? Bankruptcy - Legal process, governed by federal statute, whereby the DEBTS of an insolventperson are liquidated after being satisfied to the

Considering the following information, what is the price of the share as per Gordon’s Model? Details of the Company Net sales Rs.120 lakhs Net profit margin 12.5% Outstanding prefe

EXPLIN THE PROCEDURE FOLLOWED IN GOVERMENT SYSTEM OF ACCOUNTING IN INDIA.

US GAAP follows the Historical Cost Concept in valuing the cost of Long-Term Assets. Explain this principle and how it compares to the standards used in the reporting of Long-Term

The New York Jets have decided to go public and are offering new shares for $40. Since the Jets want to build a new stadium, the firm will retain all earnings and will not issue an

Discuss the advantages and disadvantages of different types of financing: 1. Issuing bonds 2. Borrowing from Bank 3. Equity financing

Fund flow Math problem and solution.

A Treasury bond that matures in 10 years has a yield of 3%. A 10-year corporate bond has a yield of 9%. Suppose that the liquidity premium on the corporate bond is 0.8%. What is th