Ritesh Hitesh are childhood friends ritesh is a consultant where as hitesh is an architect they contributed equal amounts and purchased a building off 2 crores after a year they sold it for three crores and share the profits equally. are they doing the business in partnership ?give reasons in support your answers
Dear student No,it is not a partnership business as it is mere sale of property. Sharing of profits from the sale of property does not constitute partnership business. Sharing of profits in conducting normal course of business for which partnership is formed will be partnership firm. Regards