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What is partnership? - Accountancy

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Question

What is partnership?

Short Answer
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Solution

According to Section 4 of the Partnership Act, 1932, a partnership is an agreement between two or more persons who have agreed to share profits or losses of a business that will be carried by all or anyone acting for all.

A person who joined their hands to set up the business is called a ‘partners’ individually and a ‘firm’ collectively and the name under which they carry out their business is called the ‘firm name’.

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Chapter 2: Accounting for Partnership : Basic Concepts - Questions for Practice [Page 96]

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NCERT Accountancy - Not-for-profit Organisation and Partnership Accounts [English] Class 12
Chapter 2 Accounting for Partnership : Basic Concepts
Questions for Practice | Q 1.1 | Page 96
Goyal Brothers Prakashan Business Studies [English] Class 12 ISC
Chapter 17 Various Business Entities
EXERCISES | Q III. 2. (i) | Page 256
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