Oswal's Class 12th Accounts Full Book Revision

UNIT - I: PARTNERSHIP ACCOUNTSCHAPTER-1FUNDAMENTALS OF PARTNERSHIPTopic-1Basics of PartnershipConcepts Covered partnership-definition, features, partnership deed- contents, rules applicable in the absence of it,profit and loss appropriation account and journal entries related to it, partners capital account-its format and journal entries related t\o it.Revision Notes Definition of Partnership: According to Section 4 of the Indian Partnership Act, 1932, Partnership is 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. Features/Characteristics of Partnership: Two or more persons: There must be at least two persons to form a partnership who work for a common purpose. Maximum number of partners can not be more than 50. Agreement: There must be an agreement between two or more persons. It may be written or oral. The written agreement among the partners is known as the Partnership Deed. Profit motive: Making profits should be the objective of the business. The partners should share the profits as well as the losses of the business. Governing Act: Partnership business must be governed as per the rules of the Indian Partnership Act, 1932. Lawful Business: Business should be lawful or legal in the eye of