IGCSE/GCSE/O & A Level/IB/University Student Forum

Qualification => Subject Doubts => GCE AS & A2 Level => Commerce => Topic started by: Ukhti-R on October 01, 2010, 09:57:21 am

Title: Does the Partnership Act completely override a partnership agreement or does it
Post by: Ukhti-R 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~
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: elemis 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.
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: Ukhti-R on October 01, 2010, 10:03:05 am: Thankk youuu! :D

Lol. Why not ? :P
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: elemis 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
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: Ukhti-R on October 01, 2010, 10:17:37 am: I don't. ;)
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: Ukhti-R 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?
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: elemis 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 (http://www.amazon.com/Frank-Woods-Business-Accounting-v/dp/0273712128/ref=sr_1_1?ie=UTF8&qid=1285929499&sr=8-1) Accounting book by Frank Wood.
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: Ukhti-R on October 01, 2010, 11:24:21 am: LOOOOOOOOOOOOOOOOOOOOOOOOOOOOL.

You're VERY clever :P
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: Ukhti-R on October 01, 2010, 11:27:14 am: Ohh and she alreadyy has the book yaaarr :P
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: Dasith 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
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: 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.:(
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: Dasith 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 ,
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: Alpha on October 14, 2011, 01:10:28 pm: Exams Dasith. :-[
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: Romeesa-Chan on October 14, 2011, 02:17:33 pm: Quote from: ~Alpha on October 14, 2011, 01:10:28 pm
Exams Dasith. :-[
Good luck, love! ;D
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: Alpha on October 14, 2011, 03:06:34 pm: Quote from: Romeesa-Chan on October 14, 2011, 02:17:33 pm
Good luck, love! ;D

Thank you. :) :-*
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: Dasith on October 15, 2011, 01:44:06 am: Quote from: ~Alpha on October 14, 2011, 01:10:28 pm
Exams Dasith. :-[
ohhh gud luck wid dat then ,
By the way which subjects do u do ? & is it cambridge or edxcel ?
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: Alpha on October 18, 2011, 09:39:22 am: Thank you. :)

CIE. A Levels- Maths, Eco, Accounting.
AS- General Paper and French. :)

Good luck to you too, if you've exams. :)
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: aparna.agrawal1995 on October 29, 2011, 10:46:51 am: Alpha, I need your help like maths P3. I have an AS accounting paper on monday. I'm repeating my AS accounting because i got a grade B when i gave it in the may/june session this year. Now I feel totally lost. I need you to please revise accounts and eco p2 too. because i have eco p2 also on monday. Please hep me out! :(
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: Dasith on October 29, 2011, 03:58:10 pm: Quote from: aparna.agrawal1995 on October 29, 2011, 10:46:51 am
Alpha, I need your help like maths P3. I have an AS accounting paper on monday. I'm repeating my AS accounting because i got a grade B when i gave it in the may/june session this year. Now I feel totally lost. I need you to please revise accounts and eco p2 too. because i have eco p2 also on monday. Please hep me out! :(

I'm sure we culd work something out , so wat do u need help wid ?
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: aparna.agrawal1995 on October 29, 2011, 07:08:32 pm: My teacher promised me to get me an A but she failed to do so and now i feel totally lost and I've given up on her. :'( I've practiced all the past papers and I don't really know what else to do. My teacher has given me some other questions to try but they seem useless 'because those kinda questions aren't to be seen in the past papers pattern. So, now I want to know what else should I do to improve my grade. Moreover, i have economics p2 on the same day and I'm not a strong candidate in eco either. :/ So now I have only approximately a day left to prepare for both eco and acc and S1 (which I've prepared well). Basically, i need tips for quick revision of eco and accounts p2.
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: Dasith on October 30, 2011, 01:51:36 am: Accounting is a subject which goes with practice , so i sujjest that u start doing the past papers again , i'm sure u'd still make mistakes in some questions, check why & how you went wrong , not just the ans in MS. U could start with the question paper which u did first , i mean a paper which u cant remember much... By the way i really dont think its a good time to go throuh u r text book ..
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: Dasith on October 30, 2011, 01:55:38 am: By the way teachers can never promise u any grade in exams & neither can u , work hard & do your best in the exam, & be happy with wat you get.. & good luck with your exams :D
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: aparna.agrawal1995 on October 30, 2011, 05:01:10 am: Thank you $tyli$h Executive and Dasith. :) Ill do as you both said.
Title: Re: Does the Partnership Act completely override a partnership agreement or does it
Post by: Alpha on October 30, 2011, 05:06:44 am: Aparna, 3 subjects, barely one day left.

If you don't have enough time to do past papers, just read the markschemes and the examiners' reports. These will point out mistakes you ought avoid.

Thank you to the three people who helped. I'll be back later... I mean, tomorrow^.