What is a Partnership Deed ?

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Q. What is a Partnership Deed ?

Tamil Nadu DgeTamil Nadu HSC (DGE) Commerce Board 2025Subjective· 2mImportance★★★★★

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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, …

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2024Set MARCH1 markMCQ
$Q. A Partnership is formed by ______.$
(a) the direction of Government
(b) agreement
(c) friendship
(d) relationship among persons
›Reveal solutionSolution

A partnership is formed by an agreement, option (b).

Under the Indian Partnership Act, 1932, partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. The very foundation of a partnership is a contract (agreement) among the partners; this agreement may be oral or written, and when written it is called the partnership deed.

…

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CBSE 2022Set MARCH1 markMCQ
$Q. A partnership is formed by ________.$
(a) the direction of government
(b) agreement
(c) friendship
(d) relationship among persons
›Reveal solutionSolution

The answer is option (b) agreement.

According to the Indian Partnership Act, 1932, partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. The key point is that this relationship arises out of a contract (agreement), not out of status, birth, friendship or any government direction. The agreement may be oral or writte …

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CBSE 2020Set MARCH1 markMCQ
$Q. A partnership is formed by ________.$
(a) agreement
(b) relationship among persons
(c) the direction of government
(d) friendship
›Reveal solutionSolution
The correct answer is (a) agreement. Partnership is the result of an agreement (contract) between persons, not of status, relationship or government direction.

Under the Indian Partnership Act, 1932, partnership is "the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all." The key word is agreed:

Partnership arises from an agreement — a voluntary contract among the partners. This may be oral or written (a written one is the Partnership Deed). Hence (a) is correct.

It is not created merely by a relationship among persons — for example, members of a Hindu Undivided Family are related but that is not a partnership. …
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Q.What is a Partnership Deed ?

Concept understanding — Meaning and Features of Partnership

Q.What is a Partnership Deed ?

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