What is partnership deed ? state the main contents of a partnership deed.
Answers
Answer:
Partnership deeds, in very simple words, are an agreement between partners of a firm. This agreement defines details like the nature of the firm, duties, and rights of partners, their liabilities and the ratio in which they will divide profits or losses of the firm.
Few essential characteristics of partnership deed area:
The name of the firm.
Name and addresses of the partners.
Nature of the business.
The term or duration of the partnership.
The amount of capital to be contributed by each partner.
The drawings that can be made by each partner.
Explanation:
Partnership deed is an agreement between the partners of a firm that outlines the terms and conditions of partnership among the partners .
This agreement defines details like the nature of the firm , duties , and rights of partners , their liabilities and the ratio in which they will divide profits or losses of the firm .