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Author Topic: Does the Partnership Act completely override a partnership agreement or does it  (Read 3726 times)

Offline Ukhti-R

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Does the Partnership Act completely override a partnership agreement or does it
« on: October 01, 2010, 09:57:21 am »
Accounting. A2 CIE

Okay, to make it simple:
A partnership agreement between 2 partners provides for interest on capital, but does not give the profit sharing ratio.

According to the Partnership Act, the profit will now be shared equally. But my question is: does the interest on capital still hold? Do the partners still receive their interests? Does the Partnership Act completely override a partnership agreement or does it just supplement it?

P.S. I would prefer a logical explanation, or if can't be, a simple answer.

Thank you everyone. :)
Have a nice day~
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elemis

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Re: Does the Partnership Act completely override a partnership agreement or does it
« Reply #1 on: October 01, 2010, 10:01:37 am »
When I did Accounting in year 11 I used a textbook that was actually meant for college use.

The Partnership Act as per UK law is only taken into account if the partners DO NOT have a written Partnership Agreement.

For example, if Mr. A and B are arguing over the profit sharing ratio and considering they dont have a Partnership Agreement then profit is split equally as per the The Partnership Act.

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Offline Ukhti-R

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Re: Does the Partnership Act completely override a partnership agreement or does it
« Reply #2 on: October 01, 2010, 10:03:05 am »
Thankk youuu! :D

Lol. Why not ? :P
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"...And whosoever fears Allah and keeps his duty to Him, He will make a a way for him to get out (from every difficulty). And He will provide him from (sources) he never could imagine. And whosoever puts his trust in Allah, then He will suffice him." [65: 2-3]

elemis

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Re: Does the Partnership Act completely override a partnership agreement or does it
« Reply #3 on: October 01, 2010, 10:08:36 am »
Quote from: Jump! on October 01, 2010, 10:03:05 am
Thankk youuu! :D

Lol. Why not ? :P

I didnt think you did accounting :P
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Offline Ukhti-R

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Re: Does the Partnership Act completely override a partnership agreement or does it
« Reply #4 on: October 01, 2010, 10:17:37 am »
I don't. ;)
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Offline Ukhti-R

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Re: Does the Partnership Act completely override a partnership agreement or does it
« Reply #5 on: October 01, 2010, 10:42:12 am »
Okay, but Ari, They DO have a partnership agreement and it does provide for interest on capital except the profit sharing ratio. What will happen in that case?

We know the profit will be distributed equally to both partners acc. to the Partnership Act. But will the interest on capital be paid before?
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elemis

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Re: Does the Partnership Act completely override a partnership agreement or does it
« Reply #6 on: October 01, 2010, 11:22:15 am »
Ah, I see. I'll be honest. My knowledge of the Partnership Act doesnt go beyond what I've stated. Tell Alpha to buy this Accounting book by Frank Wood.
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Offline Ukhti-R

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Re: Does the Partnership Act completely override a partnership agreement or does it
« Reply #7 on: October 01, 2010, 11:24:21 am »
LOOOOOOOOOOOOOOOOOOOOOOOOOOOOL.


You're VERY clever :P
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Offline Ukhti-R

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Re: Does the Partnership Act completely override a partnership agreement or does it
« Reply #8 on: October 01, 2010, 11:27:14 am »
Ohh and she alreadyy has the book yaaarr :P
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Offline Dasith

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Re: Does the Partnership Act completely override a partnership agreement or does it
« Reply #9 on: April 27, 2011, 01:42:09 am »
Partnership act doesnt overide a partnership agreement in any way, if partnership agreement dosent specify some things/do not hav an agreement then the partnership act comes into play, the ans to your question is that intrest on the capital is paid according to the partnership agreement profit is shared equally as partnership agreement dosent specify it , hope u get it :D
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Alpha

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Re: Does the Partnership Act completely override a partnership agreement or does it
« Reply #10 on: October 11, 2011, 08:03:45 am »
Thanks Dasith, bit late though. :D

Roxxxy, thank you lovely. <3

And Ari, I miss you boy.:(
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Offline Dasith

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Re: Does the Partnership Act completely override a partnership agreement or does it
« Reply #11 on: October 12, 2011, 02:40:56 pm »
Quote from: ~Alpha on October 11, 2011, 08:03:45 am
Thanks Dasith, bit late though. :D

Roxxxy, thank you lovely. <3

And Ari, I miss you boy.:(
this i ans centeries ago lol ! , wat was up wid u ? , didnt see u around 4 a long time ,
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Alpha

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Re: Does the Partnership Act completely override a partnership agreement or does it
« Reply #12 on: October 14, 2011, 01:10:28 pm »
Exams Dasith.  :-[
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Offline Romeesa-Chan

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Re: Does the Partnership Act completely override a partnership agreement or does it
« Reply #13 on: October 14, 2011, 02:17:33 pm »
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Alpha

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Re: Does the Partnership Act completely override a partnership agreement or does it
« Reply #14 on: October 14, 2011, 03:06:34 pm »
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