Partnership: Essential Elements and Deed

A partnership is defined as an association of two or more persons who agree to share the profits or losses of a business carried on by all or any of them acting for ______.

According to the Companies Act, 2013, the maximum number of partners generally allowed in a partnership is capped at ______.

The document that contains the terms and conditions governing the partnership, such as the profit and loss sharing ratio and capital contribution of each partner, is known as the ______ Deed.

The account prepared to ascertain the gross profit or gross loss from buying and selling goods is called the ______ Account.

The distribution of profits among partners, including items like interest on capital and partners' salaries, is shown in the ______ and Loss Appropriation Account.

The document that presents a firm's assets, liabilities, and equity at a specific point in time is called the ______ Sheet.

Expenses directly related to the production or purchase of goods, such as wages and carriage inwards, are classified as ______ expenses.

The interest allowed on partner's capital increases their capital account balance, implying the firm ______ a portion of its profit to compensate partners for their investment.

The account prepared to show how the net profit is distributed among the partners is known as the Profit and Loss ______ Account.

Under the fixed capital method, a ______ Account is maintained to record transactions like share of profit or loss, interest on capital, and drawings.

When goods are distributed as free samples, the Trading Account is ______ (as a reduction of purchases) and Advertisement Expenses are debited in the Profit and Loss Account.

Under the fluctuating capital method, all transactions between the partner and the firm are recorded in the ______ Account.

When goods are destroyed by fire or accident and are not insured, the Trading Account is credited while Profit and Loss Account is ______.

The formula to calculate Gross Loss is Opening Stock + Purchases + Direct Expenses - (Sales + ______ ).

In the absence of a partnership deed, partners usually share profits and losses ______.

An estimated amount set aside to cover potential bad debts is known as ______ for Doubtful Debts.

Income received but not yet earned is shown on the liability side of the Balance Sheet and deducted from the respective income in the Profit and Loss Account, this is generally known as Income Received in ______.

Expenses that have been incurred but not yet paid are added to the respective expense in the Profit and Loss Account and shown as a liability in the Balance Sheet, these are known as ______ Expenses.

Partnership

Partnership Agreement

Partnership Deed

Mutual Agency

Profit and Loss Sharing Ratio

Trading Account

Profit and Loss Appropriation Account

Balance Sheet

Gross Profit Equation

Gross Loss Equation

Profit and Loss Account

Outstanding Expenses

Prepaid Expenses

Depreciation

Bad Debts

Fixed Capital Method