Contents of Partnership – Deed?

The Partnership Deed usually contains the following details:

  • Names and Addresses of the firm and its main business;

  • Names and Addresses of all partners;

  • Amount of capital to be contributed by each partner;

  • The accounting period of the firm;

  • The date of commencement of partnership;

  • Rules regarding operation of Bank Accounts;

  • Profit and loss sharing ratio;

  • Rate of interest on capital, loan, drawings, etc.;

  • Mode of auditor’s appointment, if any;

  • Salaries, commission, etc., if payable to any partner;

  • The rights, duties and liabilities of each partner;

  • Treatment of loss arising out of insolvency of one or more partners;

  • Settlement of accounts on dissolution of the firm;

  • Method of settlement of disputes among the partners;

  • Rules to be followed in case of admission, retirement, death of a partner; and

  • Any other matter relating to the conduct of business.

If there is something which is not covered in Partnership Deed, provisions of Indian Partnership Act 1932 will apply in treating those issues in firm books.