hi

MAIN CONTENT OF PARTNERSHIP DEED

1. Name and address of the firm: The partnership deed consists of the name of the business and the place where it is being operated. 

2. Name and address of the partners: The deed also includes the name of the partners in the business. It also includes their address and age.

3. Nature of partnership business. A partnership is a type of business in which two or more person come together with there resources to invest in a common business with the purpose of sharing the profits of the business.

4. Commencement and duration of partnership: The deed also specifies the commencement and duration for which the partnership in valid

5. Partner's capital: The must point in the deed is of capital contribution made by the partners in the firm.

6. Interest on capital: The deed also decides the amount of interest which should be paid on the capital invested in the firm. The tax laws a partnership firm do not recognise distribution by way of interest above 12% pa. on the amount invested by the partner.

7 Drawings: The deed also contains of the maximum amount that can be withdrawn by any partner at one time.

8. Profit and loss sharing ratio: The utmost important point written in the deed is the sharing ratio of the profits and losses of the firm between the partners. If it is not mentioned m the agreement, then the profit and loss are to be distributed equally between the partners

9.Admission and retirement of partners: Another clause that exists in the agreement in the admission and retirement of the partners. It includes the rights and duties of both the retiring partner and the admitting partner along with the responsibilities and rights of existing partners.

10.Accounts and audit: The deed of partnership also includes the preparation of books of accounts and the need for auditing them. The procedure of book keeping and their audit must be explained in the deed.

11.Dissolution of the partnership: The clause of dissolution states the method and the reason of the dissolution of the partnership.

12 Conduct and management of business

13. Arrangement in case a partner becomes insolvent

14. Dispute resolution or arbitration in matters of dispute 

15. The methods of revaluation of assets and liabilities on admission of retirement or death of a partner

16. Settlement in the case of the dissolution of a partnership