We know that partnership is established by an agreement which may be oral or in writing. It is always better to have the agreement in writing to avoid any dispute. The document, containing the agreement in writing amongst partners is called Partnership Deed. The Partnership Deed is stamped according to the provisions of the Stamp Act and contains the following particulars:
1. Description of the Partners.
Names, description and addresses of the partners.
2. Description of the Firm.
Name and address of the firm.
3. Principal Place of Business.
Address of the principal place of business.
4.Nature of business.
Nature of business, the firm proposes to carry on.
5. Commencement of Partnership.
Date of commencement of partnership.
6. Capital COntribution.
The amount of capital to be contributed by each partner. Also, whether the capital accounts shall be fixed or fluctuating.
7. Interest on Capital.
If interest on capital is to be allowed on capital, then at what rate?
8. Interest on Drawings.
If interest is to be charged on drawings, then at what rate?
9. Profit-sharing Ratio.
Ratio in which profits or losses are to be shared by the partners.
10. Interest on Loan.
What shall be the rate of interest on loan by a partner to the firm?
11. Salary.
If the partner is to be paid salary,commission, etc., then how much?
12. Goodwill.
The manner in which goodwill of the firm eill be valued in the case of its reconstitution.
13. Valuation of Assets.
The manner in which assets of the firm shall be valued in the case of its reconstitution.
14. Settlement of Account
The manner in which account of partner(s) shall be settled in case of his retirement or death.
15. Settlement of Accounts in case ofDissolution of Firm.
The manner in which accounts shall be settled when the firm is dissolved.
16. Accounting Period.
The date on which accounts shall be closed every year.
17. Rights and Duties of Partners.
What shall be the duty of each partner?
18. Duration of Partership.
The period for which partnership is established. If it is at will, the notice that will be required if any partner wishes to retire.
19. Bank Operation.
How shall the bank be operated? Whether it shall be operated by any of the partners or jointly?
20. Settlement of Disputes.
If any dispute arises among the partners, how it shall be settled. If an arbitrator(s) is to be appointed, how will the arbitrator(s) be appointed?
1. Description of the Partners.
Names, description and addresses of the partners.
2. Description of the Firm.
Name and address of the firm.
3. Principal Place of Business.
Address of the principal place of business.
4.Nature of business.
Nature of business, the firm proposes to carry on.
5. Commencement of Partnership.
Date of commencement of partnership.
6. Capital COntribution.
The amount of capital to be contributed by each partner. Also, whether the capital accounts shall be fixed or fluctuating.
7. Interest on Capital.
If interest on capital is to be allowed on capital, then at what rate?
8. Interest on Drawings.
If interest is to be charged on drawings, then at what rate?
9. Profit-sharing Ratio.
Ratio in which profits or losses are to be shared by the partners.
10. Interest on Loan.
What shall be the rate of interest on loan by a partner to the firm?
11. Salary.
If the partner is to be paid salary,commission, etc., then how much?
12. Goodwill.
The manner in which goodwill of the firm eill be valued in the case of its reconstitution.
13. Valuation of Assets.
The manner in which assets of the firm shall be valued in the case of its reconstitution.
14. Settlement of Account
The manner in which account of partner(s) shall be settled in case of his retirement or death.
15. Settlement of Accounts in case ofDissolution of Firm.
The manner in which accounts shall be settled when the firm is dissolved.
16. Accounting Period.
The date on which accounts shall be closed every year.
17. Rights and Duties of Partners.
What shall be the duty of each partner?
18. Duration of Partership.
The period for which partnership is established. If it is at will, the notice that will be required if any partner wishes to retire.
19. Bank Operation.
How shall the bank be operated? Whether it shall be operated by any of the partners or jointly?
20. Settlement of Disputes.
If any dispute arises among the partners, how it shall be settled. If an arbitrator(s) is to be appointed, how will the arbitrator(s) be appointed?
