Question

What Is a Partnership Deed and Its Content?

Answer 1

A partnership deed is an agreement that is made between two or more partners of a firm and it outlines the various terms and conditions of the partnership among the partners.

The contents of a partnership deed are as follows:

• Name of the firm as determined by all the partners.
• Name and details of all the partners of the firm.
• The date on which business commenced.
• Firm’s existence duration.
• Amount of capital contributed by each partner.
• Profit sharing ratio between the partners.
• Duties, obligations and power of each partner of the firm.
• The salary and commission (if applicable) that is payable to partners.
• The process of admission or retirement of a partner.
• The method used for calculating goodwill.
• The procedure that must be followed in cases of dispute arising between partners.
• Procedure for instances when a partner becomes insolvent.
• Procedure for settlement of accounts in the event of dissolution of a firm.

Also read:

• Partnership Deed
• MCQs on Partnership Deed

Learn about more questions and answers on business studies and various other commerce topics from our website.