Partnership Accounting for Firms

Partnership firm involves two or more people, who join together to earn profits. Accounting for partnership firms involves preparing and maintaining the full set of accounts for the firm where all income, expenses, partners contribution, drawings etc are recorded.

As per the Section 4 of The Partnership Act, 1932, “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.”