A Partnership Deed is an agreement between the partners of a business that describes the terms and conditions of the partnership.

Partnership Deed

The partnership deed contains the following details

Business of the firm

Business carried on by the partners of the firm

Duration of Partnership

Duration of Partnership whether the tenure of a partnership firm is for a short period of time or for a specific project.

Sharing of profit/loss

The ratio of profit and loss shared between the partners in a business.

Salary and commission

Commission and salary details regarding salary and, if applicable, commission paid to partners.

Capital contribution

Contribution of Capital Each partner will make a capital commitment, and interest on that capital will be paid to the partners.

Partner’s Drawing

The policy outlines the types of drawings from the firm that each partner is allowed to make, as well as any interest paid to the firm on such drawings.