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NAME- DUTI SAHA

CLASS- 11
SECTION- D
SUBJECT- COMMERCE
SCHOOL- NATIONAL GEMS
HIGHER SECONDARY SCHOOL
YEAR -2018-19
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TOPIC

Assume you are studying a partnership

firm with your friend/friends. Develop a
business plan covering the following
aspects :-
1) Formation of the partnership firm.
2) Rules and steps to be followed
including a partnership deed.
3) Choice of the types of partners
giving justification for the same.
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Acknowledgment
Having a research on a topic like
‘Partnership’, was a very interesting work. I
am very grateful to my commerce teacher,
Arghya Chowdhury Sir, my Vice-Principal
Ma’am, Jayshree Roy Ma’am and my
Principal Ma’am, Keya Sinha Ma’am, to
give me such an opportunity to work on such
an exciting topic and for letting me know
more about the subject and the chapter.
I am thankful to my subject teacher who
have helped me to do the project and also by
providing some information.
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Index
Serial Page
Content
Number Number

1) INTRODUCTION 5

2) BUSINESS ANALYSIS 6

3) PRODUCT DETAILS 7

4) ANALYSIS OF PARTNERS 8-10

5) RIGHTS OF PARTNERS 11-12

OBLIGATIONS OF
6) 13
PARTNERS

7) PARTNERSHIP DEED 14-20

8) CONCLUSION 21
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Introduction

A partnership is a voluntary association of two or

more persons who agree to carry on some business
jointly and share its profits and losses in agreed ratio.
In a partnership, each person contributes
something to the business -- such as ideas, money,
property, or some combination of these. Management
rights, profit share, and personal liability will vary
depending on which of the three modern partnership
forms the business takes: general partnership, limited
partnership, or limited liability partnership (LLP).
Various partnership arrangements are
possible in which all partners might share liabilities
and profits equally or some partners may have limited
liability. Not every partner is necessarily involved in
the management and day-to-day operations of the
venture, such as in the case of a "silent partner." In
some jurisdictions, partnerships enjoy favourable tax
treatment relative to corporations. 
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BusinessAnalysis
Name of the Business- The name of the business is
‘Cotton Hut’.
Nature of the Business- The business is a business of
garments which is a manufacturing business. This business
firm is specialised in cotton garments, It’s a large-scale
business. Through this business we attempt to satisfy customer
needs by manufacturing comfortable and designed garments.
There are large variety of clothes. Persons of every age can
buy our clothes. We keep stock for small children as well as for
senior children as well as for senior citizens and middle aged
and for women too.
Type of Business-The business is a private sector
undertaking. In this business there is no Government
participation. The business is totally controlled, owned, and
financed by private businessmen. The main motive of private
sector undertakings is to earn profits.
Scale of Operation- Cotton hut is large scale operation.

Address- The full address is 38/A, Diamond Harbour Road,

Behala, Kolkata-700060.
Area served- The business firm is located on Behala, West
Bengal, India, which is a metropolitan city.
Amount of capital invested- The total amount of capital
invested is ₹48,00,000.
Logo- The logo consists of picture of cotton and the name of
the business ‘Cotton Hut’.
Website-www.cottonhut.com
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Product Details

Cotton Hut is engaged in manufacturing with a

really genuine and trendiest assortment of men,
women and children’s clothing.
The clothes are made up of various colours at a
very genuine and local prices.
It’s a global apparel brand creating organic and
skin friendly fabrics that are made out of natural
dyes, organic fabric with designs that are pristine
and modern. The fabric made from organic cotton,
silk, bamboo organic as well with goodness of
turmeric, madder, pomegranate, myrablam,
beetroot, etc.
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ANALYSIS OF PARTNERS
Partner 1 :-

Name- Duti Saha

Type Of Partner- Active Partner

Reason- Duti Saha is an active partner as she takes active

part in the management and also contributes capital. She bears
an unlimited liability for the firm’s debts. She shares profits and
losses of the firms. She is known to outsiders.
Partner 2 :-
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Name- Akash Bardhan

Type Of Partner- Active Partner

Reason- Akash Bardhan is an active partner as he takes

active part in the management and also contributes capital. He
bears an unlimited liability for the firm’s debts. He shares profits
and losses of the firms. He is known to outsiders.
Reason For Being A Partner- I have chosen him as a
partner because I have been knowing him since my childhood
and also, we have a common understanding and mutual trust.
He is too cooperating and hardworking.
Signature Of The
Partner-

Partner 3 :-
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Name- Ankit Manna

Type Of Partner- Active Partner

Reason- Ankit Manna is an active partner as he takes active

part in the management and also contributes capital. He bears
an unlimited liability for the firm’s debts. He shares profits and
losses of the firms. He is known to outsiders.
Reason For Being A Partner- I have chosen him as a
partner because I have been knowing him since my childhood
and also, we have a common understanding and mutual trust.
He is too cooperating and hardworking.

Signature Of The
Partner-
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Rights of partners
1) Right to take part in the conduct of the business- Each
partner in a business partnership have the right to take
part in the business proceeding. But this right is subject to
a contract to the contrary. 

2) Right to be consulted- every partner has the right to

express his views in front of other partners also.
Sometimes, difference of opinion arises among the
partners.

3) Right to Share Profits- Every partner is entitled to have

equal share in the profits of the firm. At the same time, the
partners are equally liable to all the losses sustained by
the firm unless otherwise agreed upon as per the
partnership agreement.

4) Right to Interest on Capital- Ordinarily, no interest is

payable to the partners. However, if it is allowed by an
express or implied agreement or by the custom of trade, a
partner can charge interest on capital. In such a case also,
interest shall be paid only out of profits.

5) Right to Indemnified- The partner of a firm is entitled be

indemnified by the firm in the following circumstances:-
a) Expenses incurred in the ordinary course of business, and
b) Expenses incurred in an emergency.

6) Right to the use of the Partnership Property- In the

absence of any contract to the contrary, each partner is
presumed to have an equal share in the property of the
partnership and is entitled to have them held and used
only for the purpose of the business. Partners should not
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use it as their own property. When at any point of time, a

partner uses the property of the business firm to his own
benefit either directly or indirectly, the profits thus earned
are accountable to the firm.

7) Power in an Emergency-As per the Indian Partnership Act,

a partner is vested with the powers to initiate action to
safeguard the firm from loss.

8) No Liability before Joining the Firm-Unless there is a

contract to the contrary, new partner will not have any
liability for any act of the firm done before he become a
partner.

9) Right not to be Expelled- Every partner has a right not to

be expelled from the firm unless there is a clause in the
partnership agreement that give power to the majority of
the partners to expel him in good faith.

10) Right to Share Subsequent Profits After Retirement-

Where a partner has died or ceased to be a partner, the
surviving or continuing partners may carry on the regular
business with the firm’s property without any final
settlement of accounts between them. In such cases, the
outgoing partner or his estate then in the absence of a
contract to the contrary is entitled to
a) such share of the profits as is proportionate to his share in
the property of the firm, or
b) interest at the rate of 6% per annum on the amount of his
share in the property of the firm.
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OBLIGATIONS OF PARTNERS
i. Every partner should carry on the business to the
greatest common advantage. He must perform his
duties honestly and diligently.
ii. A partner is not entitled to get remuneration for the
conduct of business, unless otherwise it is specially
mentioned in the partnership deed.
iii. A partner must indemnify the firm for loss suffered
because of his fraudulent conduct or wilful neglect.
iv. A partner is bound to keep and render true and
correct accounts of the business.
v. A partner cannot carry on a competing business. If
he carries on such business he shall account for and
pay to the firm all profits made by him in that
business.
vi. A partner is bound to act within the scope of his
authority.
vii. No partner can make a secret profit of the
partnership business by way of commission, etc. If he
does so, he must return the money to the firm.
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PARTNERSHIP DEED
A partnership deed is a document containing the terms and
conditions of a partnership. It is an agreement in writing signed
by all partners duly stamped and registered under Partnership
Act 1931. It defines the rights, duties and obligations of
partners and governs relations among them in the conduct of
business affairs of the firm. The terms and conditions stated in
partnership deed can be changed with the consent of all the
partners. A partnership deed usually contains the following
clauses:
1) Nature of firm.
2) Nature of the firm’s business.
3) The principal place of business.
4) Duration of partnership, if any.
5) Names and addresses of partners.
6) Amount of capital to be contributed by each partner.
7) Amount which can be drawn by each partner.
8) The profit-sharing ratio.
9) Rate of interest, if any, on capital and drawings.
10) Amount of salary or commission payable to
partners.
11) Allocation of work among partners.
12) Mode of valuation of goodwill.
13) Procedure of admission, retirement, etc., of a
partner.
14) Procedure for maintaining accounts and getting
them audited.
15) Procedure to be followed in the event of
dissolution of the firm and settlement of accounts.
16) Arbitration clause in case of disputes among
partners.
17) Loans and advances by partners and rate of
interest payable on them.
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পশ্চিমবঙ্গपश्चिमबंगाल WEST BENGAL 02AB

335525

DEED OF PARTNERSHIP

This deed of partnership is made on [1st, April, 2018] between:

1. Duti Saha, Daughter of Mrs. Rina Saha, residing at B7/29, Diamond Park,
Kolkata, West Bengal, 700104 here in after referred to as FIRST PARTNER.
2. Akash Bardhan, Son of Mr. Raja Bardhan, residing at 26, Ho Chi Minh Sarani,
Kolkata, West Bengal, 700061 here in after referred to as SECOND
PARTNER.
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3. Ankit Manna, Son of Mr. Arup Manna, residing at 281/N, Parnasree

Extension, Behala, West Bengal, 700060 here in after referred to as THIRD
PARTNER.
Whereas, the parties hereto have agreed to commence business in partnership
and it is expedient to have written instrument of partnership. Now this
partnership deed witnesses as follows:

1. BUSINESS ACTIVITY
The parties here to have mutually agreed to carry on the business of Cotton
Garment Business.

2. PLACE OF BUSINESS
The principal place of the partnership business will be situated at 38/A,
Diamond Harbour Road, Behala, Kolkata-700060

3. DURATION OF PARTNERSHIP
The duration of the partnership will be at will.

4. CAPITAL OF THE FIRM

Initially the capital of the firm shall be ₹48,00,000.

5. PROFIT SHARING RATIO

The profit or loss of the firm shall be shared equally among all the partners and
transferred to partner’s current account.
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6. MANAGEMENT
The First Partner of the firm, Duti Saha of the firm shall be Managing Partner
and she will look after all the day to day transaction of the firm and any legal
activities in the name of the firm and the remaining partners shall co-operate
to do so.

7. OPERATION OF BANK ACCOUNTS

The firm shall open a current account in the name of [Partnership Firm Name]
at any bank and such account shall be operated by Duti Saha and Akash
Bardhan jointly as declared from time to time to the Banks.

8. BORROWING
The written consent of all Partners will be required for the partnership to avail
credit facilities from any financial institution.

9. ACCOUNTS
The firms shall regularly maintain in the ordinary course of business, true and
correct accounts of all its transactions and also of all its assets and liabilities,
the property books of account, which shall ordinarily be kept at the firm’s
place of business. The accounting year shall be the financial year from 1 st April
onwards and the balance sheet shall be properly audited and the same shall be
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signed by all the Partners. Every Partner shall have access to the books and the
right to verify their correctness.

10.RETIREMENT
If any partner shall at anytime during the subsistence of the partnership, be
desirous of retiring from the firm, it shall be competent from his to do so,
provided he shall give at least one calendar month notice of his intention of
doing so. The remaining partner shall pay to the retiring partner or his legal
representatives of the deceased partner, the purchase money of his share in
the assets of the firm.

11.DEATH OF PARTNER
In the event of the death of any partners, one of the legal representatives of
the deceased partner shall become the partner of the firm and in the event the
legal representative show their denial to point the firm, they shall be paid the
part of the part of the purchase amount calculated as on the date of the death
of the partner.

12.ARBITRATION
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Whenever there by any difference of opinion or any dispute between the

partners the partners shall refer the same to an arbitration of one person. The
decision of the arbitration so nominated shall be final and binding on all
partners, such arbitration proceedings shall be governed by Indian Arbitration
Act, which is in force.

In witness whereof, this deed of partnership is signed sealed and delivered this
15th April, 2018 at Kolkata, West Bengal:

FIRST PARTNER SECOND PARTNER

Duti Saha Akash Bardhan

B7/29, Diamond Park, Joka 26, Ho Chi Minh Sarani,

Behala

Kolkata, West Bengal, 700104 Kolkata, West Bengal, 700061

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THIRD PARTNER

Ankit Manna

281/N, Parnasree Extension, Behala

Kolkata, West Bengal, 700060

WITNESS ONE WITNESS TWO

Mrs. Rina Saha Mr. Deep Saha

B7/29, Diamond Park, Joka B7/29, Diamond Park, Joka

Kolkata, West Bengal, 700104 Kolkata, West Bengal, 700104

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Conclusion
A good communication and collaboration
strategy can save money. The capability to
access external resources mean that these do
not have to be employed on a permanent
basis and their costs can be shared across a
broader base of organization. The use of on-
demand external services can provide at
worst predictable costs, and at best the
economics of scale required for lower costs-
and many tools are available on open source
permit that can help to reduce initial cost.