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Question

What Is a Partnership Deed and Its Content?


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Solution

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:

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