Assignment on Importance of Partnership Business- Case study on Computer Village

Generally, a relationship of two or more entities conducting business for mutual benefit is called partnership business.
A type of unincorporated business organization in which multiple individuals, called general partners, manage the business and are equally liable for its debts.Other individuals called limited partners may invest but not be directly involved in management and are liable only to the extent of their investments. Unlike a Limited Liability Company or a corporation, in a partnership each partner shares equal responsibility for the company's profits and losses, and its debts and liabilities.

The partnership itself does not pay income taxes, but each partner has to report their share of business profits or losses on their individual tax return.

Partnership Law:

A Partnership organization follows and establish through the partnership act. Partnership act is in various types. First partnership act was made in 1890, after this in 1892, 1893, and 1932. Now most of the Partnership organization follows partnership act-1932.

Partnership Agreement:

A Partnership is based on a partnership agreement or contract known as the articles of co-partnership. The partnership agreement serves as a basis for the formation, operation, and liquidation of a partnership and should be in writing to avoid any misunderstandings or disagreements.

Books of account Maintained by partnership business
Partnership business maintains some books of accounts by which partners can take importation decisions and prepare financial statements. Which books of accounts maintained by partnership business can be categorized into four parts. These parts are:-