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Partnership firm by Jyotika Raikwar

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Partnership Firm Theory

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Partnership firm by Jyotika Raikwar

  1. 1. Only ‘e’ learning can make ‘e’xpert Accountant {An ISO 90001-2008 Certified Company} A Unit of Webtel Electrosoft Private Limited
  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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
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  13. 13. PREV © WEBTEL ELECTROSOFT PVT. LTD. PRINT PDF NEXT

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