Chapter 1 · Part 1

Accounting for Partnership — Basic Concepts

How two or more people build a business together — deeds, capital & sharing profit.

Concepts

Formulae

7 min

Read time

Beginner

Learning objectives

1Explain learning Objectives
2Explain nature of Partnership
3Explain definition
4Explain essential Features of Partnership
5Explain partnership Deed
6Explain definition

Your learning path

Introduction

Learning Objectives

1. Nature of Partnership

Definition

Essential Features of Partnership

2. Partnership Deed

Definition

Contents of a Partnership Deed

Provisions Applied When the Deed Is Silent

Worked Example

Summary

Quiz

Revision

Follow the full path

Key terms

partnershipNo interestloanequallyAgreementMutual AgencyProfit Sharingproduct methodCapital AccountCurrent AccountPartnership DeedBusiness OperationTwo or More PersonsUnlimited Liabilityfixed capital methodminimum profit share

Connected chapters

Dissolution of Partnership Firmshares: Capital Account

17Concepts

3Formulae

7Minutes

NextReconstitution of a Partnership Firm – Admission of a Partner