“Partnership and Liabilities on Partners through Partnership Agreement”
• To help the students in understanding the term “Partnership” and the kinds of Partners.
• To help the student in understanding the position of minor partner in a Partnership
• After attempting the assignment, students will be able to know about the Partnership,
Partners' liabilities and participation.
• Students will be able to handle the situation during minority and majority phases in a
Partnership is the relation between persons who have agreed to share profits of the business
carried on by all or any one of them acting for all.A Partnership is an association of two or more
individuals who agree to share the profits of a lawful business which is managed or carried by
them. Partnership is the relation between persons competing to make contract who agrees to
carry on a lawful business in commonwith a view of private gain.
A COMPANY PROFILE
A well known garment company XYZ, start a new product for youngsters. When they launch the
product the active partner Mr. Nadim admitted his minor son Mr. Salman to the benefits of the
partnership. Mr. Salman reaches his majority after 6 months and elected to remain a partner of
the firm. XYZ company makes a fresh partnership deed and implement with all legal
After One week of partnership deed, the company lost Mr. Salman in a road accident and they
lost a partner. All the accounts of the company were closedat the end of the year and the
income-tax officer calculated all the Profits betweenthe partners and also the tax to be paid by
1. Give some solid reasons that why the father’ is liable to pay tax on the income of his
minor son. (10)
2. What are the possible conditions for the existence of a “Partnership Agreement”. Explain
in your own words. (10)