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Only ‘e’ learning can make ‘e’xpert Accountant 
{An ISO 90001-2008 Certified Company} 
A Unit of Webtel Electrosoft Private Limited
CHAPTER -7 
INCOME FROM PARTNERSHIP FIRM 
WHAT IS PARTNERSHIP FIRM 
PROCEDURE FOR REGISTRATION OF A PARTNERSHIP FIRM 
INCOME FROM PARTNERSHIP FIRM 
PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
INCOME FROM PARTNERSHIP FIRM 
What is partnership firm 
CHAPTER -7 
A Partnership firm refers to a business 
house which is owned by two or more 
people jointly. If any partner become 
insolvent or dies, the partnership firm gets 
dissolved.” To make a partnership firm there is 
need to make a partnership between two or 
more people. 
PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
CHAPTER -7 
INCOME FROM PARTNERSHIP FIRM 
Advantages / Disadvantages of partnership FIRM 
Advantages 
• Easy to Form(No legal formalities) 
• Availability of Large resources 
• Flexibility in operation 
• Better Decision 
• Sharing Risk 
Disadvantage 
• Limited Capital 
• Absence of Legal Status 
• Dissolution 
• Mutual Trust 
• Sharing of Profit 
PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
CHAPTER -7 
INCOME FROM PARTNERSHIP FIRM 
Procedure for registration of a partnership firm 
The law relating to a partnership firm is 
contained in the Indian Partnership 
Act, 1932. 
• As per Section 58 of the Act, a firm may be registered at any time by filing an application with 
the Registrar of Firms of the area in which any place of business of the firm is situated. 
• It is not compulsory to get registration of firms. It is optional for partners to set the firm registered 
and there are no penalties for non-registration. 
PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
CHAPTER -7 
INCOME FROM PARTNERSHIP FIRM 
Procedure for Registration of a partnership firm 
Make an Application 
Prescribe Form for Incorporation in FORM 01 and 
Affidavit 
Attached Certified copy of Partner ship Deed and 
ownership proof of the principal place of business 
Submit all Document to the Registrar 
Hyperlink 
PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
CHAPTER -7 
INCOME FROM PARTNERSHIP FIRM 
Procedure for registration of a partnership firm 
When the Registrar of Firms is satisfied that 
the provisions of section 58 have been duly 
complied with, he shall record an entry of the 
statement in the Register of Firms and 
issue a Certificate of Registration. 
PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
CHAPTER -7 
INCOME FROM PARTNERSHIP FIRM 
Procedure for registration of a partnership firm 
For Examples MR. MANOJ KAUSHAL 
and MR.PRASHANT has started a 
partnership firm with the name of M/S 
PRAMAN SALES. before start the 
business they have decided to make a 
PARTNERSHIP- DEED 
Click here for Partnership deed 
Hyperlink 
PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
INCOME FROM PARTNERSHIP FIRM 
Responsibilities of a firm 
CHAPTER -7 
At the end of year firm has to Maintain 
• Profit and loss account 
• Balance Sheet 
• Profit and Loss Appropriation Account 
• Computation 
• Depreciation 
Hyperlink 
PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
CHAPTER -7 
INCOME FROM PARTNERSHIP FIRM 
Some Accounts requiring consideration while preparing the final 
account. These are 
• Partner’s Capital Accounts 
• Interest on Partner’s Drawings 
• Interest on Partner’s Capitals 
• Salary or Commission to Partners 
• Interest on Partner’s Loan 
• Capital Ratio and distribution of Sharing Profit 
Hyperlink 
PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
INCOME FROM PARTNERSHIP FIRM 
Assessment of Firm 
Net Profit as per Profit and Loss Account 
Add: In-admissible Expenses 
Less: Admissible Expenses 
Less: Income credited to P & L A/c but taxable under other heads 
CHAPTER -7 
Less: Maximum amount allowed on account of Remuneration U/s 40b 
Less: Deduction chapter VI A 
Net Taxable Income from Partnership Firm 
PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT

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Partnership firm by Jyotika Raikwar

  • 1. Only ‘e’ learning can make ‘e’xpert Accountant {An ISO 90001-2008 Certified Company} A Unit of Webtel Electrosoft Private Limited
  • 2. CHAPTER -7 INCOME FROM PARTNERSHIP FIRM WHAT IS PARTNERSHIP FIRM PROCEDURE FOR REGISTRATION OF A PARTNERSHIP FIRM INCOME FROM PARTNERSHIP FIRM PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
  • 3. INCOME FROM PARTNERSHIP FIRM What is partnership firm CHAPTER -7 A Partnership firm refers to a business house which is owned by two or more people jointly. If any partner become insolvent or dies, the partnership firm gets dissolved.” To make a partnership firm there is need to make a partnership between two or more people. PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
  • 4. CHAPTER -7 INCOME FROM PARTNERSHIP FIRM Advantages / Disadvantages of partnership FIRM Advantages • Easy to Form(No legal formalities) • Availability of Large resources • Flexibility in operation • Better Decision • Sharing Risk Disadvantage • Limited Capital • Absence of Legal Status • Dissolution • Mutual Trust • Sharing of Profit PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
  • 5. CHAPTER -7 INCOME FROM PARTNERSHIP FIRM Procedure for registration of a partnership firm The law relating to a partnership firm is contained in the Indian Partnership Act, 1932. • As per Section 58 of the Act, a firm may be registered at any time by filing an application with the Registrar of Firms of the area in which any place of business of the firm is situated. • It is not compulsory to get registration of firms. It is optional for partners to set the firm registered and there are no penalties for non-registration. PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
  • 6. CHAPTER -7 INCOME FROM PARTNERSHIP FIRM Procedure for Registration of a partnership firm Make an Application Prescribe Form for Incorporation in FORM 01 and Affidavit Attached Certified copy of Partner ship Deed and ownership proof of the principal place of business Submit all Document to the Registrar Hyperlink PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
  • 7. CHAPTER -7 INCOME FROM PARTNERSHIP FIRM Procedure for registration of a partnership firm When the Registrar of Firms is satisfied that the provisions of section 58 have been duly complied with, he shall record an entry of the statement in the Register of Firms and issue a Certificate of Registration. PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
  • 8. CHAPTER -7 INCOME FROM PARTNERSHIP FIRM Procedure for registration of a partnership firm For Examples MR. MANOJ KAUSHAL and MR.PRASHANT has started a partnership firm with the name of M/S PRAMAN SALES. before start the business they have decided to make a PARTNERSHIP- DEED Click here for Partnership deed Hyperlink PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
  • 9. INCOME FROM PARTNERSHIP FIRM Responsibilities of a firm CHAPTER -7 At the end of year firm has to Maintain • Profit and loss account • Balance Sheet • Profit and Loss Appropriation Account • Computation • Depreciation Hyperlink PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
  • 10. CHAPTER -7 INCOME FROM PARTNERSHIP FIRM Some Accounts requiring consideration while preparing the final account. These are • Partner’s Capital Accounts • Interest on Partner’s Drawings • Interest on Partner’s Capitals • Salary or Commission to Partners • Interest on Partner’s Loan • Capital Ratio and distribution of Sharing Profit Hyperlink PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
  • 11. INCOME FROM PARTNERSHIP FIRM Assessment of Firm Net Profit as per Profit and Loss Account Add: In-admissible Expenses Less: Admissible Expenses Less: Income credited to P & L A/c but taxable under other heads CHAPTER -7 Less: Maximum amount allowed on account of Remuneration U/s 40b Less: Deduction chapter VI A Net Taxable Income from Partnership Firm PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
  • 12. PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT
  • 13. PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT