Brief notes on Partnership Deed and Its Contents

A partnership is always formed by an agreement between the partners. This may be oral or written. When the agreement is written, duly stamped and signed by the partners, it is called the “Partnership Deed” or “Article of Partnership.”

The contents of partnership deed are as follows:

1. Name of the firm.

2. Names, qualifications, occupations and addresses of partners.

3. The nature of business of firm.

4. Duration of the partnership.

5. The capital contribution of each partner.

6. The amount of drawings that can be made by each partner.

7. The rate of interest, if any, payable on the capital contributed or chargeable on withdrawals.

8. The ratio of sharing profits and losses.

9. Salaries, commissions if any, payable to the partner.

10. The manner in which additional capital is to be introduced.

11. Work to be undertaken by each partner.

12. The method of calculating goodwill on retirement or admission of a partner.

13. Rights, duties and liabilities of partners.

14. Method of admission of partners.

15. Method of retirement of partners.

16. Method of operating bank accounts.

17. Method of settlement of accounts on retirement or death of a partner.

18. Mode of settlement of accounts in case of dissolution.

19. Method of settling disputes, if any, between the partners.

20. Method of revaluation of assets and liabilities on admission, retirement etc.