Free Webinar on Fundamentals of Partnership Accounts
A partnership firm is a business jointly owned by two or more persons. Partnership is defined by Indian Partnership Act of 1932 as “the relation between persons who have agreed to share profits of a business carried on by all or any one of them acting for all”. This definition highlights the following features of a partnership business.
i) A partnership involves two or more persons.
ii) It is formed on the basis of an agreement.
iii) It is formed for conducting a business.
iv) Profit or loss arising from the business will be shared by the partners.
v) It may be run by all the partners or any one of the partners representing all of them.
