Partnership comes into existence as a result of an agreement among the partners, that agreement is called...... Option 1: Partnership Option 2: Partnership Document Option 3: Partnership Deed Option 4: Partnership Constitution.

Answer: Partnership Deed. Solution: The agreement that brings a partnership into existence is called a Partnership Deed. A partnership deed is a written document that contains all the terms and conditions agreed upon by the partners. It serves as the foundation of the partnership and includes details such as: - Profit sharing ratio among partners - Capital contribution by each partner - Interest on capital and drawings (if any) - Partner's salary or commission (if any) - Duration of partnership - Rights, duties and obligations of partners When partners enter into a partnership, they formalize their relationship through this legal document. While a partnership can be formed orally (except for banking business), it is always advisable to have a written partnership deed to avoid future disputes and provide clarity on all agreed terms. The term "Partnership" refers to the business organization itself, while "Partnership Deed" specifically refers to the agreement that creates it.

Partnership

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Partnership comes into existence as a result of an agreement among the partners, that agreement is called......

Partnership

Partnership Document

Partnership Deed

Partnership Constitution.

✅ Correct Option: 3

The agreement that brings a partnership into existence is called a Partnership Deed.

A partnership deed is a written document that contains all the terms and conditions agreed upon by the partners. It serves as the foundation of the partnership and includes details such as:

Profit sharing ratio among partners
Capital contribution by each partner
Interest on capital and drawings (if any)
Partner's salary or commission (if any)
Duration of partnership
Rights, duties and obligations of partners

When partners enter into a partnership, they formalize their relationship through this legal document. While a partnership can be formed orally (except for banking business), it is always advisable to have a written partnership deed to avoid future disputes and provide clarity on all agreed terms.

The term "Partnership" refers to the business organization itself, while "Partnership Deed" specifically refers to the agreement that creates it.

2025: 13 May Shift 1

Calculate Interest on drawings for the amount of Rs. 7000 withdrawn on November 30, 2019

2023: 20 June Shift 2

The content of Partnership deed includes:

A. Name and address of all partners

B. Method of settlement of disputes among partners

C. Deed once made cannot be altered

D. Rules regarding operation of Bank account

E. Verbal agreement between partners is considered as deed

Choose the correct answer from the options given below:

2025: 14 May Shift 1

Amitabh and Babul are partners sharing profits in the ratio of 3:2, with capitals of Rs. 50,000 and Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. Babul is to be allowed an annual salary of Rs. 2,500. Manager is to be allowed commission Rs. 5,000. Amitabh has also given a loan on April 01, 2019 of Rs. 50,000 to the firm without any agreement. During the year 2019-20, the profits earned is Rs. 22,250. What amount of profit will be transferred to Profit and Loss Appropriation account :

2026: 19 May Shift 1

Krishna, Sandeep and Karim are partners sharing profits in the ratio of 3:2:1. Their fixed capitals are: Krishna Rs. 1,20,000, Sandeep 90,000 and Karim 60,000. For the year 2024-25, interest was credited to them at @ 8% p.a. instead of 5% p.a. Find the amount transferred from Karim to Krishna's current account as an adjustment.

2026: 20 May Shift 1

Radha and Rani are partners in a firm. Their capital accounts as on April 01, 2024 showed a balance of Rs. 2,00,000 and Rs. 3,00,000 respectively. On July 01, 2024, Radha introduced additional capital of Rs. 50,000. On October 01, Radha withdrew Rs. 30,000, from her capital. Interest is allowed @ 8% p.a. Calculate the interest payable to Radha on her capital during the financial year 2024–2025.

2026: 21 May Shift 2

If partnership deed is silent in respect of interest on drawings, how much interest wll be charged?

Partnership comes into existence as a result of an agreement among the partners, that agreement is called......

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