Hi, today we talk about Partnership deed its form and its content of an organization, is a document that outlines in detail the rights and responsibilities of all parties to a business operation.
Partnership deed its form and its content of an organization
Partnership deed is a document, which contains all necessary rules and regulations required to run the partnership business.
- Partnership agreement may be oral
- Partnership agreement may be written
- The partnership agreement may be written and registered.
The best form of partnership deed is that it must be written & registered and signed by all the partners so that partners can know their rights and any dispute or misunderstanding among the partners may be removed in the light of written partnership deed.
Content of partnership deed
- Name of firm
Name of firm should be written in partnership agreement
- Nature of business
Nature of business should be mentioned in it.
Duration of partnership whether it is for the definite or indefinite period should be mentioned.
The total capital of the firm and the share of the partner should be decided in the partnership deed.
- Profit & loss ratio
Profit and loss sharing ratio of business should be agreed in partnership deed.
Date of starting the business should be written in partnership agreement
- Name of partners
Name of the partners and their addresses should be described in the partnership agreement.
Location of the business should be written in agreement
- Ways of dissolution
The manners under, which the firm may be dissolved and procedure of dissolution should be decided
- Loan and interest
The provision regarding the amount of loan of interest thereon should be mentioned.
- Division of work
The division of work among the partners for the management firm should be finalized.
- Deficiency in capital
How the deficiency of capital will be covered in the hour of need, it should also be settled
The amount that each partner shall be allowed to withdraw in anticipation of profit and interest thereon
- Minor partner
Procedure and provision regarding the admission of minor partnership
- Insolvency of partner
It is clarified in the partnership agreement that if any partner becomes insolvent, what will be the effects on partnership.
- Determination of goodwill
How the value of goodwill is determined. The particular method for this purpose is stated in the agreement.
- Audit and accounts.
Audit and accounts preparation provision is also mentioned in the partnership deed.