Partnership Act 1908 - Language

Partnership

• A business owned and run by one person.
• A business owned by two or more people who work together to make a profit.
• A book used to record business transactions in accounting.
• The value a partner owns in the business (capital + profits - drawings).

Partner

• The money or other assets a partner puts into the business.
• A person who owns and runs the business with others.
• An activity that sells goods or services to make money.
• The total decrease in value of an asset over time due to use and age.

Business

• An activity that sells goods or services to make money.
• An amount paid to a partner as a reward for investing money into the business.
• The original value an item is recorded at in the accounting records.
• Money borrowed by the business that must be paid back.

Profit

• A business owned by two or more people who work together to make a profit.
• The value a partner owns in the business (capital + profits - drawings).
• The extra value of a business because of things like reputation or customer loyalty.
• The money left over after all expenses are paid.

Agreement

• A decision made and accepted by all partners, either written or spoken.
• The amount a partner starts with in the business.
• Money or goods taken out of the business by a partner for personal use.
• The original value an item is recorded at in the accounting records.

Assets

• A charge for taking money out of the business early.
• Things the business owns that have value (like equipment, cash, or stock).
• The extra value of a business because of things like reputation or customer loyalty.
• A decision made and accepted by all partners, either written or spoken.

Liabilities

• The value a partner owns in the business (capital + profits - drawings).
• Money the business owes to others (like loans or unpaid bills).
• A fixed amount given to a partner for their work in the business.
• A business owned by two or more people who work together to make a profit.

Capital

• All partners are equally responsible for the business’s debts.
• The value a partner owns in the business (capital + profits - drawings).
• The money or other assets a partner puts into the business.
• Money borrowed by the business that must be paid back.

Drawings

• The total decrease in value of an asset over time due to use and age.
• A running record of a partner’s share of profits, drawings, and other changes.
• The extra value of a business because of things like reputation or customer loyalty.
• Money or goods taken out of the business by a partner for personal use.

Equity

• The value a partner owns in the business (capital + profits - drawings).
• An amount paid to a partner as a reward for investing money into the business.
• A business owned by two or more people who work together to make a profit.
• A fixed amount given to a partner for their work in the business.