PARTNERSHIP DEED
A partnership firm can be formed through an agreement
among two or more persons. In India this agreement may be oral or
in writing. But it is desirable to have it in writing to avoid any
misunderstanding among the partners in future. All the terms and
conditions of partnership are included in the agreement. The
partnership agreement is also known as Partnership Deed or Articles
of Partnership.
1. Contents of Partnership Deed
A partnership deed will usually provide for the following
matters.
1. Name of the firm.
2. Date of agreement and principal place of business.
3. Names and addresses of all the partners.
4. Nature of business proposed to be carried on by the firm.
5. Duration of the partnership, if any.
6. Amount of capital contributed by each partner.
7. Amount of withdrawal of each partner.
8. Profit sharing ratio.
9. Salary payable to active partner or partners.
10. Interest on capital and interest on drawings.
11. Procedure for admission or retirement of partners.
12. Manner of dissolving the firm and the mode of settlement of
accounts on such dissolution.
13. Maintenance of books of accounts and their audit.
14. Interest to be allowed on partner’s loans and advances to the
firm.
15. Mode of valuation of goodwill on admission, retirement or death
of a partner.
16. Procedure for settlement of disputes among partners by
arbitration.
.
The contents of a partnership deed can be altered only with
the consent of all the partners.
A partnership firm can be formed through an agreement
among two or more persons. In India this agreement may be oral or
in writing. But it is desirable to have it in writing to avoid any
misunderstanding among the partners in future. All the terms and
conditions of partnership are included in the agreement. The
partnership agreement is also known as Partnership Deed or Articles
of Partnership.
1. Contents of Partnership Deed
A partnership deed will usually provide for the following
matters.
1. Name of the firm.
2. Date of agreement and principal place of business.
3. Names and addresses of all the partners.
4. Nature of business proposed to be carried on by the firm.
5. Duration of the partnership, if any.
6. Amount of capital contributed by each partner.
7. Amount of withdrawal of each partner.
8. Profit sharing ratio.
9. Salary payable to active partner or partners.
10. Interest on capital and interest on drawings.
11. Procedure for admission or retirement of partners.
12. Manner of dissolving the firm and the mode of settlement of
accounts on such dissolution.
13. Maintenance of books of accounts and their audit.
14. Interest to be allowed on partner’s loans and advances to the
firm.
15. Mode of valuation of goodwill on admission, retirement or death
of a partner.
16. Procedure for settlement of disputes among partners by
arbitration.
.
The contents of a partnership deed can be altered only with
the consent of all the partners.
Thanks for sharing the information. A written legal agreement outlining the rights and responsibilities of a partnership deed participants, making clear to each of the partners the gains and losses and other important decisions and their consequences.
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