Partnership Firm Definition - deed - interest on drawing

1. PARTNERSHIP-
FUNDAMENTALS
K.Hariprasath assistant professor
YOGESH R II BCOM CA(A)

2. CONTENT
 What is partnership?
 What is partnership deed? Is this
essential for partnership business?
 Finally a problem regarding interest on
drawings.

3. WHAT IS PARTNERSHIP?
ACCORDING TO SECTION 4 OF THE
INDIAN PARTNERSHIP ACT 1932,PARTNERSHIP IS
DEFINED AS “THE RELATIONSHIP BETWEEN PERSONS
WHO HAVE AGREED TO SHARE THE PROFITS OF A
BUSINESS CARRIED ON BY ALL OR ANY OF THEM
ACTING FOR ALL”.

4. WHAT IS PARTNERSHIP DEED? IS THIS ESSENTIAL
FOR PARTNERSHIP BUSINESS?
• The document or instrument, containing
the agreement between partners, is
known as partnership deed.
• It is not legally necessary for a
partnership agreement to be in
writing/or in oral,in india it is optional.

6. FINALLY A PROBLEM REGARDING THE INTEREST
ON DRAWINGS.
A partner makes drawings of rs.2,000
p.M. Under the partnership deed.
INTEREST IS TO CHARGED AT 12%
p.A. What is the interest that should be
charged to the patner if the amount was
drawn
(I)in the beginning of the month
(ii)in the middle of the month and
(iii)at the end of the month.

7. i) if the amount was drawn at the beginning of
the month
24,000x12/100x6.5/12= RS.1,560
(ii) if the amount was withdrawn in the middle of
the month.
24,000x12/100x6/12 = RS.1,140
(iii) if the amount was drawn at the end of the
month.
24,000x6/12x5.5/12 = RS.1,320