What will be the extent of liability if Prince, Rijule and Krishan are partners in a firm sharing profits and losses in an equal ratio. Their capital balance as of 31st March 2022 is ₹ 80,000, ₹ 60,000 and ₹ 40,000 respectively. Their assets are worth ₹ 20,000, ₹ 15,000, ₹ 10,000.

A partnership is an arrangement where parties, known as business partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combinations.