Contents of Partnership Deed
A partnership deed refers to an agreement which forms the basis of partnership between the partners who are getting into partnership. It contains all the terms which are related to the business for which partnership has come into existence. Given below are some of the contents of partnership deed –
1. The partnership deed should have Name and address of the partnership firm.
2. It should also have Name and contact address of each partner individually.
3. It should mention the capital which is contributed by each partner and also the profit sharing ratio of each partner which can either on the basis of capital invested by each partner or it can equal among all partners.
4. It should also clearly mention the conditions under which partnership will be dissolved and how the accounts of each will be settled in that case.
5. Many times the partnership is reconstituted reason may be admission of new partner, death or retirement of any partner; in that case partnership deed should clearly mention the method of valuation of goodwill and revaluation of assets and liabilities.
6. The objectives behind the business and also the reasons due to which partnership was needed for carrying on such business.
Apart from above contents there can many other contents which can be put into the partnership deed depending upon on the nature and objectives of the business for which partnership is being formed.