What Is Partnership Deed?

1 Answers

Hassan Raza Profile
Hassan Raza answered
It is compulsory that in order to form a partnership there must be an agreement among the partners. This agreement may be in writing or oral. But is must be in writing for the settlement of disputes among the partners.

It is most important document of the partnership, which includes the terms and conditions relating to the partnership and the regulations governing its internal management and organization. Partnership agreement in writing is called partnership deed. This is the document in which the rights and duties of the partners of the partnership are written. It should be stamped according to the law. All the partners must sign it. Each partner should have a copy of the deed.

Important provisions / contents of the partnership deed

• Name and location of the firm
• The nature of the business.
• Total capital of the firm.
• Share of each partner along with a statement whether this contribution is in cash or in property.
• Status of each partner in the partnership
• Profit and loss sharing ratio.
• Name and addresses of the partners.
• The duties, rights and obligations of all the partners
• The duration of the partnership in any.
• Length of accounting period of the firm.
• The rate of interest charged on capital, if any.
• The maximum amount of drawing for each partner.
• The rate of interest charged on drawings, if any

Answer Question