Question 11 of 50beginner🧠 RememberShort Answer2 marks

Define Partnership Deed.

Correct Answer

A Partnership Deed is a written document that contains the terms of the partnership as agreed among the partners. While the partnership agreement can be oral or written, the written document is specifically called the Partnership Deed.

It generally contains details about all aspects affecting the relationship between partners. This includes the objective of the business, contribution of capital by each partner, profit and loss sharing ratio, and entitlement to interest on capital and loans.

The deed also outlines rules regarding admission, retirement, death, and dissolution. It should be properly drafted as per the provisions of the Stamp Act and can be altered with the consent of all partners.

Exercise: Short Answer Questions | Q: 1 | (Page 36)
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Explanation

The answer is derived directly from the textbook definitions provided in the context. It defines the deed as a written document containing agreed terms and lists its typical contents like capital contribution and profit sharing ratios. The mention of the Stamp Act and alteration with consent adds necessary detail for a comprehensive 2-mark answer.