While forming a partnership, the account for the partners is included in the balance sheet and the net profit is calculated the same way as for sole proprietor except that it is divided among the partners. The owners’ equity is also divided between the partners between capital and current accounts. In order to dissolve a partnership, a notice is given by one partner and the implications of the agreement have to be kept in view according to the partnership act 1890.
Partnership
Steps
Partnership
Steps
