PPT : Introduction to Partnership Accounts | Accountancy Class 12 - Commerce PDF Download

 Page 1


CPT Fundamentals of Accounting: 
Chapter 8 – Unit 1 
 
CA. V.K. Jain 
 
Page 2


CPT Fundamentals of Accounting: 
Chapter 8 – Unit 1 
 
CA. V.K. Jain 
 
Features of a partnership firm and need of partnership deed 
Points to be covered in a partnership deed 
Technique of maintaining  P & L Appropriation Account 
Methods of maintaining partners capital accounts, namely fixed and fluctuating 
Partners capital and current accounts 
Treatment of Interest on Capital and Drawings, Salaries / Commission / Bonus / 
Remuneration etc. to partners 
Page 3


CPT Fundamentals of Accounting: 
Chapter 8 – Unit 1 
 
CA. V.K. Jain 
 
Features of a partnership firm and need of partnership deed 
Points to be covered in a partnership deed 
Technique of maintaining  P & L Appropriation Account 
Methods of maintaining partners capital accounts, namely fixed and fluctuating 
Partners capital and current accounts 
Treatment of Interest on Capital and Drawings, Salaries / Commission / Bonus / 
Remuneration etc. to partners 
Indian partnership act – “the relationship  between persons who have agreed to 
share the profits of a business carried on by all or any of them acting for all” 
Essential features: 
Association of two or more persons 
Agreement - verbal/oral or in writing 
Existence of business – legal- recognition in the eyes of law  
Page 4


CPT Fundamentals of Accounting: 
Chapter 8 – Unit 1 
 
CA. V.K. Jain 
 
Features of a partnership firm and need of partnership deed 
Points to be covered in a partnership deed 
Technique of maintaining  P & L Appropriation Account 
Methods of maintaining partners capital accounts, namely fixed and fluctuating 
Partners capital and current accounts 
Treatment of Interest on Capital and Drawings, Salaries / Commission / Bonus / 
Remuneration etc. to partners 
Indian partnership act – “the relationship  between persons who have agreed to 
share the profits of a business carried on by all or any of them acting for all” 
Essential features: 
Association of two or more persons 
Agreement - verbal/oral or in writing 
Existence of business – legal- recognition in the eyes of law  
Carrying of business by all of them or any of them acting for all 
Sharing of profits  
Unlimited liability  
Sharing of profits – not necessarily losses 
Mutual agreement 
Relationship - principal and agent    
Page 5


CPT Fundamentals of Accounting: 
Chapter 8 – Unit 1 
 
CA. V.K. Jain 
 
Features of a partnership firm and need of partnership deed 
Points to be covered in a partnership deed 
Technique of maintaining  P & L Appropriation Account 
Methods of maintaining partners capital accounts, namely fixed and fluctuating 
Partners capital and current accounts 
Treatment of Interest on Capital and Drawings, Salaries / Commission / Bonus / 
Remuneration etc. to partners 
Indian partnership act – “the relationship  between persons who have agreed to 
share the profits of a business carried on by all or any of them acting for all” 
Essential features: 
Association of two or more persons 
Agreement - verbal/oral or in writing 
Existence of business – legal- recognition in the eyes of law  
Carrying of business by all of them or any of them acting for all 
Sharing of profits  
Unlimited liability  
Sharing of profits – not necessarily losses 
Mutual agreement 
Relationship - principal and agent    
Persons entered into partnership with one another are    
individually called partners and collectively a firm 
Name under which business of the firm is carried on is 
called firm name 
Maximum limit of partners: 
• Indian Partnership Act 1932 is silent on this issue  
• According to Companies Act 1956, maximum limit of partners for a 
Banking Company is 10 and of other is 20. A partnership firm 
becomes illegal if number of partners exceeds the said limit