Difference Between Search & Browse Methods in Odoo 17
Rohan acs ppt
1. According to Indian partnership Act 1932:-
“Partnership is the relation between
persons who have agreed to share the
profits of a business carried on by all or any
of them acting for all.”
What is Partnership
2. Partnership is established by an
oral or written agreement. It is
better to have agreement in
writing to avoid any dispute.
This written document is known
as PARTNERSHIP DEED.
It is a legal document signed by
all partners and has clauses.
Partnership Deed
3. Contents of a partnership deed:
A partnership deed deals with the following matters:
Name and address of the partnership firm.
Names and addresses of the partners.
Nature of the business proposed by the firm.
Amount of capital to be contributed by each partner.
The profit sharing ratio among partners.
Duration of partnership, if any.
Amount, which can be withdrawn by each partner.
Amount of salary or commission payable to any partner for his
services to the firm.
Rate of interest allowed to the partners on their capital.
Rate of interest to be paid on drawings by the partners.
4. RULES APPLICABLE IN THE ABSENCE
OF PARTNERSHIP DEED
1. Profit sharing Ratio : Profits and losses would be shared equally
among partners.
2. Interest on capital : No interest on capital would be allowed to
partners. If there is an agreement to allow interest on capital it is
to be allowed only in case of profits.
3. Interest on drawings: No interest on drawings would be charged
from partners.
4. Salary: No salary or commission is to be allowed to partners.
5. Interest on Loan : If a partner has provided any Loan to the firm,
he would be paid Interest at the rate 6% p.a. This interest on loan
is a charge against profits i.e. it is to be allowed even if there are
losses to the firm.
6. Admission of a new partner: A new Partner can be admitted only
with the consent of all the existing partners.
5. Profit and Loss Appropriation
Account
Profit and Loss Appropriation
Account Is Thus an extension of
the profit and loss account. IN
case Of partnership firm it is an
account showing distribution of
profit among partners as per
partnership deed.
6. Interest on Drawings
Interest on drawings represent the interest
charged on drawings made by the partners
according to the partnership deed.
This interest is not a business income or gain.
Rather it forms part of the distributable
income. It is treated just opposite to interest
on capital.
7. Difference between P&L A/c and P&L Appropriation A/c
Profit and Loss Account Profit and Loss Appropriation
Account
It is prepared after the preparation of
Trading A/c.
It is prepared by all the business
concerns.
This account does not have opening
and closing balance of profit.
It is prepared after the preparation of
Profit and Loss A/c.
It is prepared by partnership firms
and companies.
This account may have both opening
as well as closing balance.
8. Interest on capital
Interest on capital is allowed to a
partner to compensate for
contributing capital to the firm in
excess of the profit sharing ratio.
Interest on capital is computed on
the opening balance of the partner’s
firm.