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SOLVED ASSIGNMENT 2 FOR CODE 438 SEMESTER SPRING 2016
Aiou solved assignment 2 for code 438 for the subject naming principles of accounting for semester spring 2016. This is the second solved assignment which is comprehensively solved for you, especially for the students of B.Com level. Principles of accounting subject is offered to commerce students normally by the Universities.
- It is relation between the persons who have agreed to share the profits of business carried on by all or any of them acting for all.
- When two or more than two persons agree to combine their resources (capital & services) to carry on some lawful business is called partnership.
Essential Elements of Partnership:-
There are many points than can be agreed and written in a partnership agreement. However, all these points must be lawful. The essential elements of partnership agreement are given below:
- The date of agreement
- The names, addresses and the CNIC numbers of the partners
- The name of partnership business
- The address of the business place with city and province.
- Capitals brought in by each partner
- Profit & loss sharing ratio
- Salary, Bonus, Commission etc. to any partner
- Rate of Interest on capitals (if any)
- Drawings and their maximum limit
- Interest on drawings, if any
- Interest on loan given by a partner to his partnership
- Admission procedure for a new partner
- Retirement procedure for an existing partner
- Goodwill and methods of valuation of goodwill
- Methods of treatment of goodwill in books of accounts
- Continuation or discontinuation of partnership at the death of a partner
- Opening and handing of Bank Account
- Partners may go to arbitration or not, in case of disputes
- Maintenance of Books of accounts and audit, if any
- Duration of partnership, if any
- Division of assets on dissolution
- Joint Insurance Policy, if any and its treatment
- Any other important clause
- Signature & Names