assuming you arean auditor drafta partnership deed for their partnership farim
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What is the question in this
Explanation:
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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.
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.
The partnership deed contains the following details:
- Business of the firm: Business to be undertaken by the partners of the firm.
- Duration of Partnership: Whether the duration of the partnership firm, is for a limited period or for a specific project.
- Sharing of profit/loss: Ratio of sharing profits & losses of the firm among partners.
- Salary and commission: Details of the salary, and commission if any, payable to partners.
- Capital contribution: Capital contribution to be made by each partner and the interest on said capital to be paid to partners.
- Partner’s Drawings: Policy regarding the drawings from the firm allowed to each partner and interest if any to be paid by partner, to the firm on such drawings.
- Partner’s Loan
- Duties & Obligations of partners
- Admission, Death & Retirement of partner