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A partnership is when two or more individual agrees to contribute money, assets, and other resources to run the business and share the profit and loss. There is various aspect related to partnership assignment which needs professional approach.
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Let’s first understand partnership and its different aspect, so that you can understand what we can offer to our clients at partnership assignment help.
As discussed above partnership is an agreement between two or more individuals to run a business. These partners agree to some or all of their money, labour, skill and property. Based on business purpose, a partnership is divided into:
1) Active partners: As the name suggest, these partner stays active and take part in day-to-day operations of the business. They invest money and are entitled to a share of profit.
2) Sleeping partners: They just invest in the business and don’t take part in day-to-day operations of the business. They are entitled to a share of profit earned.
3) Nominal partners: They don’t invest money or may not share the profit. This kind of partner just allows using their name in the partnership deed and business.
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Advantages of partnership
* Easy to organize
* Low tax rates
* It strengthens the business as capital, labour and other resources are combined.
Accounting for partnership is similar as sole proprietorship except for the number of partner’s equity accounts. Each partner will have a separate capital account for investment, withdrawal and share of profit and loss. However, it might get affected in case of a death of a partner, retirement of a partner, admission of a new partner, change in the profit sharing ratio, dissolution of firm etc.
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