Hi, today we talk about Partnership Deed, Partnership Format so it available here. It is a document that outlines in detail the rights and responsibilities of all parties to a business operation.
Partnership Deed is a document, which contains all the necessary rules and regulations required to run the partnership business.
Partnership Deed Definition Format Contents
- The partnership agreement may be oral
- The partnership agreement may be written
- The partnership agreement may be written and registered.
Partnership Deed Format
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
The content of the Partnership Deed
- Name of firm-Name of the firm should be written in the partnership agreement
- Nature of business-Nature of business should be mentioned in it.
- Duration-Duration of partnership whether it is for the definite or indefinite period should be mentioned.
- The capital-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-Date of starting the business should be written in the partnership agreement
- Name of partners-Name of the partners and their addresses should be described in the partnership agreement.
- Location-Location of the business should be written in the 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 drawing 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 are also mentioned in the Partnership Deed.
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