This lesson plan outlines a class on accounting for partnerships that discusses the rules applicable in the absence of a partnership agreement. The teacher uses dramatization with student volunteers to depict a partnership dispute over profit sharing without a written agreement. Students then discuss reasons for the dispute. The teacher explains the key rules: partners share profits and losses equally; interest is only paid on capital from profits; no interest on drawings; interest can be paid on loans regardless of profits; and partners receive no salary.

1. LESSON PLAN
Name of the teacher: Thara Gopinanth Class: XII. B
Name of the school: Concordia Lutheran H S S, Peroorkada Strength: 39
Subject: Accounting Date:19/6/2014
Unit: Accounting for Partnership Duration: 45minutes
Topic: Rule applicable in the absence of partnership deed
Content outline Identify the rules applicable in the absence old partnership deed.
Content analysis
Terms Relevant, irrespective, contribution, share capital, remuneration
Facts
1. There are 5 rules applicable in the absence of an agreement.
2. Partners are entitles to share profits and losses of the firm equally, irrespective of
their capital contribution.
3. Partners are not entitled to any interest on capital the absence of an agreement.
4. When the agreement provides for payment of interest such inters shall be paid only
in the firm has a profit.
5. The firm incurred a loss; it does not pay interest on capital.

2. 6. If any partner has given a loan to the firm in addition to his share capital he shall be
entitled to interest on such loan@6%.
7. Interest on loan shall be paid even if the firm is not making any profit.
8. No interest is charged on drawings made by the partners.
9. Partners shall not be paid any salary or commission for participating in the
business of the firm
Concept
Major Rules applicable in the absence of partnership deed
Curricular objectives To get awareness about the rules applicable in the absence of partnership deed through
dramatization and general lecturing
Pre requisites The students are already aware about the partnership deed.
Reference 1. Accounting plus Two test book.
Teaching learning aids 1. Teacher conducted dramatization in the class with the help of the students.
2. Usual classroom teaching aids such as blackboard and chalk
3. Activity for discussion

3. CLASS ROOM INTERACTION
STUDENTS RESPONSE
Teacher completed the regular classroom procedure.
In order to introduce a new topic, teacher called the name of the students, which are
already decided to do demonstration in the classroom. The class was arranged for
doing drama.
The script was as follows.
Characters:
1. A (Active partners)
2. B (sleeping partners)
3. C (sleeping partners)]
SCENE 1
(A, B and C have decided to start a business with mutual understand, by
shaking their hands.)
A: I am contributing Rs. 1,00,000 for it
B: I decided to contribute Rs. 2, 00,000.
C: I think I can contribute Rs. 3, 00,000.
SCENE 2
(B and C are sitting in the office room with little bit nervousness. At that time
A entered the office.)
A: What happened friends? Why both of you are sitting like this?
B: We are confused because we can’t attend the office regularly.
Students watch it carefully.

4. A: No problem, I will manage all the activities concerned with the business
without any delay.
C: That’s a good idea.
SCENE 3
(A is engaged in all business activities)
SCENE 4
(After one month, business earned profit Rs.60, 000. B and C are entered into
office room.)
A: Good morning both of you
B: At last we earned profit, shall we celebrate.
C: Before the celebration we should share the profits
B: Ok, we shall share the profit equally.
A: No! Along with the profit I need salary too.
C: Salary! For what purpose? I contributed Rs.3, 00,000, so I need ¾ of the
profit.
A: I did all the business works properly and that’s profit earned.
SCENE 5
The friendly situation is changed into dispute.
Now teacher entered into the play area. And teacher appreciated the students
by saying
Very good.
Then teacher asked the students ,
What is your interpretation from this dramatization and discuss on it?
ACTIVITY
Students are interestingly
watching it
Students shall clap.

5. Then teacher divide the class into bench wise and provide a activity card.
Then teacher asks one student from each group to read out the point they
found.
Teacher appreciated by saying that all the answers you found are correct.
Then teacher discuss the important provision of Partnership Acts in the
absence of written agreement.
Then teacher explain the rules applicable in the absence of an agreement.
1. Profit and loses sharing proportion: partners are entitled to share
profits and losses of the firm equally.
2. Interest on capital: partners are not entitled to interest on capital, but if
there is a provision for interest on capitals in the agreement, such
interest is payable only out of the profits of the firm. If he firm
Students discussed
1. Absence of
partnership deed.
2. No mutual
understanding.
3. Without corporation
4. Absence of written
agreement.
Students listen
ACTIVITY CARD
DISCUSS THE REASON BEHIND THE DISPUTE IN THIS DRAMA.

6. functions at a loss, it need no pay interest on capital.
3. Interest on drawings: no interest is charged on partner’s drawings.
4. Remuneration: partners are not entitled to any salary or other
remuneration.
5. Interest on loan: if any partner has advanced a loan to the firm in
addition to his capital contribution, he is entitled to get an interest at
6% per annum for such loan, whether there is profit or not.
Now teacher asked the students to conclude the class.
BLACK BOARD SUMMARY
19/6/2014 ACCOUNTING STD: XII
STRENGTH: 39
ABSENCE OF PARTNERSHIP DEED
Rules applicable in case of it are
1. Profit sharing
2. Interest on capital
3. Interest on drawing
4. Interest on loan
5. Remuneration to partners

7. FOLLOW UP ACTIVITIES
REVIEW QUESTION
1. What are the rules applicable in the absence of partnership deed?
ENRICHMENT PROGRAMME
A note showing points of disputes likely to be resolved through a partnership
deed.