Why Form 2220 Partnership 2023-2024

Partnership as a form of business has its essential aspects. Meet Mr. A, a young man from Chandni Chowk who makes a living by selling hand-woven saris. He always dreams of owning a departmental store one day where he can sell designer watches, footwear, and stylish accessories. Although he has the experience of selling, he lacks land and the required funds. Meet Mr. B, a middle-aged person from Delhi, having a flourishing business and also a number of shops in the prime areas of Delhi. He always dreams of generating revenue from his additional shops over and above his normal business income. Although he has the land, he is running short of time for additional businesses. Meet Mr. C, a young and ambitious man who has recently attained his master's degree. He has an excellent command over his speech and has a very good network of business associates. He always dreams of making it big with the help of his marketing and networking talents. Although he has the skills, he is short of funds. Meet Mr. D, an experienced person with enough extra funds at his disposal. He has excellent financial acumen. He dreams of earning more interest on his idle funds than that offered by the banks. Although he has the funds, he has no time. All of them mutually agreed to start a business to achieve a common goal, that is to earn profits. They enter into an agreement stating various terms and conditions to carry on business. They have formed a partnership firm. Let us take this example and understand further about the various aspects of a partnership firm. What is partnership? As per Section 4 of the Indian Partnership Act 1932, partnership is defined as a relation between persons who have agreed to share the profits of a...