Forms of Business Organisation-1 — OCM STD 11 Commerce — Question

Partnership Deed:
A written agreement that mentions in detail the rights and responsibilities of each partner for the partnership firm is known as a partnership deed.
Details included in a partnership deed:
• Name and address of the firm
• Name, age, address and telephone numbers of each partner
• Purpose of starting the partnership and its duration
• Date of establishing the partnership and its duration
• Details of capital invested by each partner and the interest on capital if it is to be given to the partner
• The limit of money a partner can draw from the business
• Rate of interest on loans given by the partners to the firm
• The ratio of distribution of profit or loss among the partners
• Distribution of work among the partners
• Details of salary or commission of partners or other facilities that the partner can get
• Provision related to keeping the accounts and book-keeping of the firm
• Provision about the power for opening a bank account and power of transactions for each partner
• The method of evaluating the goodwill of the firm
• Provision of involving an intermediary person for solving disputes and differences
• Signing authority for various documents
• Provision of admitting a new partner and retirement of an old
• Rights and duties of a partner
• Provision for admitting a minor partner
• Process of setting the accounts during dissolution of the firm
All the above details are mentioned in the Partnership deed. If the deed is not in a written form then the provisions of Partnership Act 1932 gets automatically applicable to the partnership firm created on the basis of oral agreement.