What is Partnership Deed in Accounting
We all know this thing very well that in the present time, the trend of starting a business in our country and furthering this business has become very high. The way the country's economy is progressing, in the same way, the businesses of the country are also progressing and seeing this, people are now paying more attention towards the arrangements than jobs.
At present, in the business world, people are moving fast and prefer to start and run a business together with other people, not alone, so that they can grow rapidly in the business. That is, many people start a business in partnership, but people who start a business in partnership are also advised to do Partnership Deed.
If you do not have much information about Partnership Deed, then read this article completely because but we will give you complete information about Partnership Deed (Partnership Deed in Hindi + Format).
What is Partnership?
What is Partnership Deed
We will give you complete information about Partnership Deed in this article, but before that, it is more important to understand what is Partnership? So if you do not understand Partnership, then for information, let us tell you that Partnership is called 'Partnership' in Hindi and Partnership is a formal agreement between two or more people.
That is, to put it simply, a formal agreement between two or more people is called a partnership or partnership. Under a Partnership, when people do business, they share ownership rights, responsibilities for running the business, and also share profits or losses. That is, according to the earlier determination, he runs the business.
What is Partnership Deed?
About Partnership, we told you that when people do business under Partnership, they the ownership rights, share the responsibilities for running the business, and also share the profit or loss. But there is no problem in going ahead with these things, that's why Partnership Deed is made.
Partnership Deed is a kind of Partnership Agreement, under which the agreements between the partners are included before starting a business. That is, if you do not understand what Partnership Deed is, then tell that in Partnership Deed all the necessary agreements related to the Partnership such as profit, loss, distribution of liability, the inclusion of new partners, rules, salary, withdrawal from the partnership process etc. is involved.
Many times it happens that it starts and later the partners start having problems regarding many things like division or profit or loss or ownership rights. In such a situation, to avoid such problems or to secure your future in partnership, a partnership deed is created, which is a kind of official document that clarifies the earlier agreement.
In such a situation, the partners are safe about the business and partnership and there is no problem of misunderstanding between them because they have a partnership deed which tells them about the agreement made by them. Now because it is a legal document, it is common thing that there are fewer chances of fraud when it happens.
Complete information about Partnership Deed
We have given you enough information about what is Partnership Deed, but to understand it in the best way, you should have complete information about it. So tell that the Partnership Deed is registered under the Indian Registration Act 1908, so the Partnership Deed kept with the Partners cannot be changed or destroyed in any way.
That is, it is a legal document that reduces the chances of misunderstandings and problems between the partners, and because it is proof of an agreement in a way, the chances of fraud between the partners are also reduced.
What happens in Partnership Deed?
We all know very well that if one person starts a business, then it is always better to start the subject together with two or more people because in this type of situation, there is always a possibility of failure. The chances of success are high and when the work is divided, the work is also more, so in such a situation, people like to start a business in partnership very much in today's time.
It has been seen in many cases that it also proves to be very beneficial. But there are many such cases that seem that starting a business in partnership is not that right. In such a situation, Partnership Deed is considered one of the best ways to avoid including your name in this type of case. The following things happen inside the Partnership Deed:
- Object of Partnership: It contains the name, address, and other necessary information of all the partners to clarify the type of business to be carried on by the partners.
- Place of Partnership Business: This includes the information about the place where the business is being carried on i.e. where the business is operating.
- Duration of Partnership: Partnership also has a duration of partnership which contains the date of commencement of the company and the duration of the partnership.
- Capital: This includes the agreed-upon value of the company's capital i.e. cash, property, goods or services, and details of who has contributed how much.
- Withdrawal of Capital: It describes the money withdrawn from the capital and also details whether there will be any interest etc. on it.
- Salary and Commission: It contains information about the salary or commission etc. received by the partner, that is, who will get what percentage of commission or salary.
- Profit and Loss Ratio: It contains the details about the profit or loss that is shared among the partners so that there is no confusion later.
- Regulation for dissolution of partnership: It contains the details of how a partner will be dealt with if he dissolves his partnership.
- Rules for the admission of a new partner: It contains the details of the rules to be followed if a new partner is admitted to the company.
- Rules to be followed: It describes the rules to be followed in case of bankruptcy of a partner.
- Account and Audit Statement: It contains the details of the transactions of the company and also the contribution made by the partners.
- Voluntary Withdrawal of a Partner: In case a partner makes a voluntary withdrawal, the rules prescribed for him should be mentioned in this section.
- Duties of a partner: What are the duties and responsibilities of a partner are also detailed in the partnership deed and are mentioned in this part.
- Banking and Partnership Funds: It contains information about the funds held in the name of the company i.e. in whose account and how much.
- Loans: It refers to the consent of the partners for loans to be taken by the company according to its needs.
Benefits of Partnership Deed
We all know that at present, doing business in partnership is considered very beneficial because it increases the chances of business progressing fast and becoming profitable, but many times it happens when doing business in partnership Going forward people start facing problems that are mainly related to work and profit or loss, etc.
Apart from this, this problem can also occur due to many other reasons. In such a situation, Partnership Deed helps you. Many people do not have enough information about Partnership Deeds, so SMS Mann ki Baat Hai that they do not even know about its benefits. So if you do not know what are the benefits of a Partnership Deed, then it is something like this:
- Many times, when there is a problem in the partnership when the matters go to court, then it proves to be very beneficial in that.
- On having a partnership deed, there is no possibility of confusion regarding partnership, etc. in the business.
- The Partnership Deed officially spells out the duties and responsibilities of each partner so that further problems do not arise.
- It also clarifies everything between the partners regarding profit, loss or ownership rights, etc. so that misunderstandings do not arise in these matters going forward.
.png)
0 Comments