Assuming that your are auditor, drafting a partnership deed for their partnership firm
Answers
Answer:
A partnership deed is an agreement between the partners of a firm that outlines the terms and conditions of partnership among the partners. A partnership firm is one of the popular types of organizations for starting a new business.
The smooth and successful running of a partnership firm requires a clear understanding among its partners regarding the various policies governing their partnership. The partnership deed serves this purpose. It specifies the various terms such as profit/loss sharing, salary, interest on capital, drawings, admission of a new partner, etc. in order to bring clarity to the partners.
Download ‘Partnership Deed’ Sample Format
Enter email
Download Now
Though issuing a partnership deed is not mandatory, but it’s always better to enter into a partnership deed to avoid any possible disputes and litigation among the partners. The agreement can be made between two or more partners. It must be stamped and signed by all the partners.
Explanation:
A partnership is generally a business agreement involving at least two persons with the aim to sharing business profit or loss as per agreement. Some of the necessary features of a partnership deed that will be part of the deed are;
Definition of partner members
Mutual Contribution made by each in partnership
Distribution and division of Profit or Loss
Ownership of business assets
Terms of dissolution of partnership