DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name : R.Dasharatham
Designation : Lecturer
Branch : D.C.C.P.
Institute : GPW, Warangal
Year : I year
Subject : Business Organization
Subject code : CCP-104
Topic : Forms of Business Organization-Sole
Trading and Partnership
Duration : 50 mts
Sub topic : liabilities of Partnership
Teaching Aids: :P.P.T., Animation, Photos.

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Objectives:
On the completion of this period the
student will be able to :

 Explain Liabilities of a Partner in a firm

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Recap
In the previous class, we have discussed
about:

 The rights of a partner

 The duties of a partner

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Liabilities of a Partner
 Every partner has certain liabilities beside
rights and duties

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Liability of a Partner:
 Must indemnify the firm against loss caused by
misconduct of the partner
 If a partner earns any profit from any dealing on
behalf of the firm, he is liable to disclose and
surrender such profit to the firm.
 Retiring partner is liable for all the debts of the firm
as on the date of retirement
 No partner can assign or transfer his interest in
the firm to any other person without the consent of
all the other partners.

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Liability of a Partner:
 Partners are jointly and severally liable for all the
acts of the firm

Example:
If a partner is insolvent, his dues must be paid by
solvent partners

Note: it is in addition to their liability in the firm

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Summary

We have discussed about:

 Various liabilities of a partner in the firm

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Quiz
1: The liability of the partner is:

a) Unlimited
b) Limited
c) Both are correct
d) Both are incorrect.

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 contd..

Quiz

2.If a partner earns any profits from any dealing

on behalf of the firm, he has to:

a) keep that profit

b) continue such deals
c) surrender such profit to firm
d) All the above.

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Frequently asked questions

1. List out the liabilities of a partner.

2. Explain any two of the liabilities of a partner.

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Assignment
2. What are the liabilities of solvent Partner in case
of insolvent of a partner?

4. What are the obligations of a partner?

6. List out different types of liabilities of a

partner?

CCP104.23 11