Question

Partnership comes into existence as a result of agreement among the partners.State and explain five(5) contents of a partnership Deed

Answer 1

Partnership deed is an agreement between two or more people for the purpose of carrying on any business or progression.

Partnership agreement can be oral or written but it is always advisable to have partnership deed in writing to avoid any future litigation.

Therefore Partnership deed is a written agreement between two or more person for the purpose of carrying on any business or profession.

Contents of Partnership deed

Partnership deed contains the following clause-

1. Name of the firm- Partnership deed contains the legal name of the firm for the purpose of carrying on any business or profession.

2. Name of the partner-. This clause contains the detail of the number of partners and the name and address of the partners who are agreeing to do business together.

3. Capital Contribution- This clause contains the detail of the amount and proportion in which capital being cash , asset is to be contributed by each partner.

4. Profit sharing ratio-This clause contains the detail of the ratio in which profit and loss of the firm which is earned or incurred by the business they are carrying on ,is to be shared among the partners of the firm

5. Amount of Remuneration- This clause contains the details of amount of remuneration to be paid to any of the partner- of the firm and the frequency of its payment (monthly, quarterly,half yearly or annually)

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