Minor as a partner, partnership deed and registration

MAY 8, 2020

DAY 4

XI B - Ist Period and XI A- Vth Period

THANK YOU FOR LOGGING IN! GOOD MORNING BOYS!

TODAY WE WILL COMPLETE PARTNERSHIP FORM OF ORGANISATION. 

LEARNING OUTCOMES- At the end of the topic, students will be able to:
1) Explain minor as a partner.
2) Discuss partnership deed and registration of firm.
3) List the steps of registration of firm.
4) Enumerate the contents of partnership deed.

PLEASE NOTE THAT THE NAME OF THE SECOND TYPE OF PARTNERSHIP ON THE BASIS OF LIABILITY IS LIMITED LIABILITY PARTNERSHIP.

WATCH A SMALL VIDEO FIRST TO UNDERSTAND THE TOPIC BETTER:

Q.14 Explain minor as a partner at the time of minority and majority. (4)
Ans-1. A minor is a person who is below 18 years of age .He is not legally a partner in a partnership firm but if the remaining partners agree he can be admitted to the partnership firm only to the benefits if he is the son of a deceased partner.
2. After attaining majority i.e 18 years of age, he has to decide whether he wants to become a
partner of the firm or not.
3. If he does not want to become a partner of the firm he has to give a notice within 6 months of
attaining majority.
4. If he does not give any notice to the firm then he is treated like a normal partner and will share the profits and losses of the firm and will have unlimited liability.

Q.15 What is meant by partnership deed? What are its contents? (5)
Ans- Partnership deed is the written agreement between the partners where all the terms and
conditions mutually agreed amongst the partners is written.

Contents of partnership deed are as follows:
1. Name of firm
2. Nature of business and location of business.
3. Investment made by each partner
4. Ratio in which profits and losses are shared.
5. Duties and obligations of the partners.
6. Interest on capital and interest on drawings.
7. Terms governing admission, retirement and expulsion of a partner.
8. Procedure for dissolution of the firm and method of solving disputes.

Q.16 What is meant by Registration of firm? Explain the procedure for registration of a partnership
firm. (5)
Ans - In order to bring a partnership business into existence it is not compulsory to register it .
However, it is always advisable to get the business firm registered keeping in view the implications of non registration of a firm.

The main consequences of non registration of a partnership firm are as follows-
1. A partner of a unregistered firm cannot file a case against the firm or other partners the firm or other partners.
2. The file cannot file a case against the third parties.
3. The firm cannot file a case against the partners.

Registration of firm means to get the firm registered with the registrar of firms of the state in which the firm is situated. The procedure for getting the firm registered is as follows-
1. Submission of application signed by all the partners in the prescribed form to the registrar of firms containing the following particulars like name of the firm, location of the firm ,names of other places where the firm carries on business ,the date when each partner join the firm, names and addresses of the partners , duration of partnership, etc.
2.Deposit of required fees with the Registrar of the Firms.
3.The Registrar will issue a certificate of registration after approval and make an entry in the register of firms.

GOD BLESS YOU ALL!