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Chapter 2 Accounting for Partnership Firms—Fundamentals 2.5
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Interest on Capital
10. That the partners shall not be entitled to interest on capital.
Remuneration to Partners
11. That the partners shall attend business of the partnership diligently and carry on the same for the greatest
advantage of the firm.
12. That partners shall not be paid remuneration for the work carried out by them for the firm.
Profit-Sharing Ratio
13. That the Profits or Losses, as the case may be, of the partnership business shall be shared by the partners
equally.
Accounts
14. That the accounts of the partnership shall be maintained following the accrual concept according to the
financial year, i.e., from 1st April to 31st March each year.
15. That first financial year of the firm shall end on 31st March, 2020.
Introduction of a New Partner
16. That a new partner may be introduced with the consent of all the partners on such terms and conditions
as the partners agree upon with the Person to be introduced as a partner, in the firm.
Retirement or Death of a Partner
17. That any partner may retire from the partnership, after a period of three years by giving a notice to the
other Partner(s) of not less than three months in writing and at the expiry of such notice period he shall
be deemed to have retired.
18. That on the death of any partner, during the continuance of the partnership, the firm shall not be dissolved;
the surviving nominee of that partner shall have the option to claim the share of the deceased partner or
to join in the partnership business.
Dissolution of Firm
19. That the firm shall be dissolved with the consent of all the partners or in accordance with the Provisions of
Indian Partnership Act, 1932.
Banking Account
20. That banking accounts may be opened with one or more scheduled banks and shall be operated by any
of the partners.
General
21. That the firm shall maintain its accounts and other books at the place of business and shall not be removed
from the place of business without the consent of all the partners.
22. Subject to the contract between the partners, the property of the firm includes all property and rights
and interest in the originally brought into the stock of the firm, or acquired, by purchase or otherwise, by
or for the firm, or for the purpose and in the course of business of the firm, and includes also the goodwill
of the business.
23. Each partner shall—
(i) Be just and faithful to other partners in the transactions relating to partnership business;
(ii) Pay the private debts and indemnify the other partners and assets of the firm against the
same and all other proceedings, costs, claims or demands in respect thereof;
(iii) Give full information and truthful explanations of all matters relating to the affairs of the
partnership to all the partners at all times.