alleryStart learning →A partnership deed is:
AA document in writing containing the terms agreed
BA certificate issued by the Registrar of Firms
CA statement of the firm's assets and liabilities
DAn account showing how profits were divided
Answer & Solution
Correct answer: A. A document in writing containing the terms agreed
1. The textbook defines a partnership deed as a document in writing that contains the terms of the agreement among the partners.
2. Having a deed is not compulsory under the Indian Partnership Act, 1932.
3. It is nonetheless desirable, because it serves as evidence of the terms agreed among the partners.
4. Its contents include the profit sharing ratio, the rates of interest on capital, drawings and loans, and the procedures on admission, retirement and dissolution.
_Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 3 "Accounts of Partnership Firms - Fundamentals", §3.3_
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