Q.What is a Partnership Deed ?

A Partnership Deed is the written agreement containing the terms and conditions on which the partners agree to carry on business.

A partnership is based on an agreement, and when that agreement is put in writing it is called the Partnership Deed (Accounts of Partnership Firms – Fundamentals, TN HSC Commerce). It is a document, signed by all partners and usually stamped and registered, that governs the relationship between them and helps avoid future disputes.

It commonly specifies:

• the name of the firm and the names of the partners,
• the nature of business and capital contributed by each partner,
• the profit-sharing ratio,
• interest on capital and on drawings, salary/commission to partners, and interest on loans, …