1.

Distinguish between the followingPartnership Firm and Joint Hindu Family.

Answer»
Partnership FirmJoint Hindu Family
(1) MeaningPartnership firm is controlled by two or more persons called as ‘Partners’.In Joint Hindu Family Firm, the Joint Hindu Family conducts business according to Hindu Laws.
(2) Number of MembersMinimum two members are needed for starting business. The maximum number is fifty.Membership of the firm depends upon the birth and death in the family. There is no limit on membership. A person adopted into the family also becomes a member.
(3) RegistrationRegistration is not compulsory in India, but it is compulsory in Maharashtra.Registration is not compulsory.
(4) LiabilityThe liability of partners is unlimited, joint and several.Karta has unlimited liability and Coparceners have limited liability.
(5) CapitalComparatively more, as it is contributed by all partners.The whole capital comes from ancestral property
(6) SecrecySecrets share by all partners.Secrecy can be maintained within family.
(7) ManagementAll partners takes part in management of the firm according to their skills.Karta looks after the management of the business. All Coparceners follow his decision.
(8) StabilityStability of business is affected by death, lunacy or insolvency of a partner.Comparatively, more stable as business is not affected by death of Karta or Coparceners.
(9) ActPartnerships are governed by the Indian Partnership Act, 1932.Joint Hindu Family firm follows the Hindu Succession Act, 1956.
(10) FormationPartnership firm is formed by an agreement between two or more persons.Joint Hindu Family Firm comes into existence by operation of Hindu Laws.
(11) Sharing of Profits/ LossesThe profits and losses are shared by partners as per the ratio given in the agreement.The profits and losses are shared between Karta and Coparceners.
(12) Inspection of books of AccountsA partner has a right to inspect books of accounts of the firm.A co-parcener has no right to inspect books of accounts of the firm.
(13) ImpliedAuthority Every partner has implied authority to act on behalf of the other partners.Karta has implied authority to act on behalf of the firm.

No

Partnership Firm

Hindu joint family Firm 
 
1
The relation of partnership aeries from contract , and not from status
The relation of Hindu Joint Family Firm arises from status and not from contract. It arises by operation of law. 

2
In partnership firm members will have no right by birth.
In Hindu joint family business son gets right by birth. 

3
Every partnership firm is governed by the provisions of Indian Partnership Act,1932, Indian Contract Act 1872 etc.
Every Joint family Firm is governed by the codified Hindu Laws. 


4
In partnership rights and duties of partners are determined by the provisions of Partnership Act and Partnership Agreement. .
In Hindu Joint family Firm rights and duties of members of the family are controlled by such general principles of Hindu law which contract the transactions of joint family. 

5
A partnership firm may be constituted irrespective of the members’ caste and religion.
A joint Hindu family firm is limited to Hindu Religion, that too the caste to which the members belong. 

6
In absence of an agreement of contrary intention on death or insolvency of any partner Partnership Firm Dissolves.
A joint Hindu Family firm does not dissolve on the death of any family member.  Successor of the deceased gets his interest and business of the firm continues as usual.


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