Partnership Fundamentals Notes6

Study Material & Notes for the Chapter 1

Partnership - Fundamentals


A. Definitions
Table 2.6.A1
B. Type of Guarantees
Table 2.6.B1
C. Order of applying Guarantees

In case in a question two or more Guarantees are to be applied then this order is to be followed

  1. By Partner To Firm
  2. By Firm to Partner
  3. By Partner to Another Partner(s)

When beneficiary’s actual share of profit is more than the guaranteed amount, then his share of profit is given to him, not guaranteed amount of profit.  

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