Some possible Revision Notes for the chapter "Baiscs of Partnership" in Class 12 Accountancy are:
1. Partnership: It refers to a legal form of business ownership where two or more partners come together to conduct business activities for profit. Partnership is based on the principle of mutual trust, cooperation, and agreement among partners.
2. Partnership Deed: It is a legal document that contains the terms and conditions of the partnership firm. It includes the details related to the business activities, capital contributions, profit sharing ratio, admission and retirement of partners, etc.
3. Profit and Loss Appropriation Account: It is a statement that shows the distribution of profit or loss among the partners as per the agreed profit sharing ratio. It also shows the reserves created, interest on capital, salary, commission, and bonus allowed to the partners.
4. Capital Accounts: They are personal accounts of the partners that keep the record of their capital contributions, withdrawals, and profits or losses earned by them. These accounts need to be maintained separately for each partner.
5. Goodwill: It is an intangible asset that refers to the reputation, brand value, and customer loyalty earned by the partnership firm. It is usually valued and recorded at the time of admission, retirement, or dissolution of a partner.
6. Admission of a Partner: It means the addition of a new partner to an existing partnership firm. The new partner can be admitted either by investment of capital or by purchasing a share of an existing partner. The partnership deed needs to be amended for the admission of a partner.
7. Retirement of a Partner: It means the withdrawal of an existing partner from the partnership firm. The retiring partner may take his share of capital, profit, or goodwill as per the agreed terms and conditions. The partnership deed needs to be amended for the retirement of a partner.
8. Dissolution of Partnership: It means the termination of partnership firm either by mutual agreement or by operation of law. In case of dissolution, the assets and liabilities of the partnership firm are settled and distributed among the partners as per the agreed terms and conditions. The partnership deed needs to be amended for dissolution.
9. Limited Liability Partnership (LLP): It is a form of partnership that offers limited liability to the partners. In this form of business organization, the partners are not personally liable for the debts and losses of the partnership firm beyond their agreed contribution.
10. Taxation of Partnership Firm: Partnership firms are taxed as per the Income Tax Act, 1961. The partnership firm is not liable to pay tax on its income. Instead, the partners are individually taxed on their share of profits earned from the partnership firm.
More Chapters:-
Revision Notes for Reconstitution of a Partnership Firm
Revision Notes for Admission of a Partner
click here for other Chapters.
.jpg)
