W11 - PARTNERSHIP - FINAL ACCOUNTS OF PARTNERSHIP 1 THE...

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1 FINAL ACCOUNTS OF PARTNERSHIP
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2 THE NATURE OF PARTNERSHIPS A partnership is defined as ‘the relation which subsists between persons carrying on business in common with a view of profit’. It cannot have less than 2 nor more than 20 partners (except professional firms). The powers and rights of the partners between themselves are governed by the articles or deed of partnership . In the absence of any such agreement, or if the agreement includes nothing on any of the following, the partnership is subject to the provisions of the Partnership Act.
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3 THE RIGHTS OF PARTNERS Each partner has unlimited liability . Each partner has one vote. Every partner is entitled to take part in the management of the business. Every partner is entitled to access to the books and papers of the partnership.
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4 Each partner is an agent of the partnership and can thus sign contracts on behalf of the partnership, which will then be legally bound to honour them. A new partner can only be admitted if all the existing partners consent. A partnership will be dissolved by : (1) any partner giving notice to the other partner(s) of his/her intention to leave; (2) the death, insanity or bankruptcy of a partner.
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THE SHARING OF PROFITS: A SIMPLE ILLUSTRATION Partners
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This note was uploaded on 10/24/2011 for the course ACCOUNTING 101 taught by Professor Abraham during the Spring '11 term at Abraham Baldwin Agricultural College.

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W11 - PARTNERSHIP - FINAL ACCOUNTS OF PARTNERSHIP 1 THE...

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