Partnership Firms

Partnership Firms–
Partnership is governed by Indian Partnership Act 1932.–
Partnership is created by agreement.–
Partnership is created to run a business for profit.–
Minimum number of partners is 2 and maximum can be 10 for banking business and 20 for other business.–
Who can become a partner: An individual, partnership firm, limited company.–
Who cannot become a partner: Minor, insolvent, insane cannot become partner because they are not competent to contract.–
Though a minor cannot become partner, he can be admitted for sharing the benefits.–
As per Supreme Court Judgement, HUF cannot become partner as HUF cannot be liable for action of others.–
Trust cannot become partner because partnership is established for business.–
A partnership firm is registered with registrar of firms.–
Registration of a partnership firm is optional. It is not necessary that the firm be registered. But an unregistered firm can not file suit against others for recovery of its debt whereas others can file suit against the firm.–
Liability of a partner: Every partner is liable, jointly with all other partners and also personally, for all acts of the firm while he is a partner. His liability is unlimited.–
Operational Aughority: In Partnership accounts operation authority is given by all partners.–
Any change in the operational authority is also with the consent of all partners.–
Partner cannot delegate authority.–
Every partner including a sleeping partner has authority to stop payment of a cheque issued by another partner of the firm but revocation can be done only as per operational authority.–
Death of a partner: On the death of a partner, the partnership is dissolved.–
The cheques signed by the deceased, insane or insolvent partner will be paid after obtaining consent of surviving partners.–
If the account is in credit, operations are allowed for winding up of the firm.–
It the account is in debit, operations in the account should be stopped to retain liability of the deceased /insolvent partner or his/her estate and to avoid operations of the Clayton’s rule.

Accounting & Finance for Banking

Principles & Practices of Banking Module E Pdf

Free
Module E PPB ePDFs available in our android app. Get them all at https://iibf.info/app

Accounting and Finance for Banking Module A Pdf

Free
Accounting and finance for bankers all ePDFs are available in our an app. Get them all at https://iibf.info/app

Accounting and Finance for Banking Module A Pdf

Free
Accounting and finance for bankers all ePDFs are available in our an app. Get them all at https://iibf.info/app
Learning Sessionshttps://iibf.info
Btech, JAIIB CAIIB and a tutor. Have taken more than 900+ hours online classes with more than 1,25,000 students

Popular

Free Live Classes

spot_img

More from author

What next after CAIIB? IIBF Certifications at a Glance

What next after CAIIB? 15 Certificate Exams in Finance and Banking useful for Bankers:: Introduction As per the IBA settlement, bankers who have passed JAIIB and CAIIB...

JAIIB Mega Mock Test for Free | Principles and Practices of Banking

ppb mock test:- Jaiib Exam 2020 dates will be announced soon for May 2020 by iibf. It is high time for preparing for all...

JAIIB Study Material Principles and Practices of Banking Live Class Previous Year Questions

https://www.youtube.com/watch?v=BG2s7lPiX9A Jaiib Study Material PDF Notes Papers Mock Tests - In this post you can get JAIIB Study Material PDF files as shared by other...

Principles and Practices of Banking – PPB Most important Questions

Hello friends, today in this article by the learning sessions we will share important questions and memory called topics of PPB that is principles...