The written agreement duly signed by the partners is known as partnership deed. It is also known as agreement or article of partnership. It is the document, which mentions the rules and regulations, way o operation of management and way of control of activities of the firm. It is also required at the time of registration. It helps to minimize conflict and misunderstanding among the partners.
Content of partnership deed
- Name and address of the firm
- Name and address o the partners
- Nature of the business
- Duration of partnership
- Amount of capital invested by the partners.
- Interest on capital
- Division of profit and Loss
- Drwaing of Partners and Interest thereon.
- Name of Bank and Authority for signing in the cheque.
- Salary and commission
- Right and duties of partner
- Admission and removal of partnership
- The effect of the death of Partner
- Valuation of capital and goodwill at the time of admission, death and retirement of partners
- Accounts and audits
- Revaluation of assets and liabilities
- Settlement of business in case of dissolution.
- Provision for Arbitration in case of a dispute.