In earlier in the partnership firm the liability of the partners was unlimited,in the sense that their personal capital can be used for paying their debts,but now it is been decided to make partnership unlimited into partnership limitead liability. The Institute of CHARTERED ACCOUNTANT OF INDIA[icai],is now passing an act or law to make the partnership firm accounts with limited liability.
The act now for the partnership will be provision of the LLP act 2008.
The earlier act of partnership with unlimited liability of partners was ''Indian partnership Act 1932''
but from now it will be provision for LLP act 2008.
This is really a good decision taken by the Institute of chartered accountants of India.Through this initiative more of the entrepreneours will get motivated and will come in this partnership business.
This decision will surely give a drastic and marvellous change to our business economy.