Share
Notifications

View all notifications

Why It is Considered Desirable to Make the Partnership Agreement in Writing. - Accountancy

Login
Create free account


      Forgot password?
ConceptNature of Partnership

Question

Why it is considered desirable to make the partnership agreement in writing.

Solution

Partnership agreement may be oral or written. It is not compulsory to form partnership agreement in writing under the Partnership Act, 1932. However, written partnership deed is desirable than oral agreement as it helps in avoiding disputes and misunderstandings among the partners. Also, it helps in settling disputes (as the case may be) among the partners, as written partnership deed can be referred to anytime. If written partnership deed is duly signed and registered under Partnership Act, then it can be used as evidence in the court of law.

  Is there an error in this question or solution?

APPEARS IN

 TS Grewal Solution for T S Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1 (2019 to Current)
Chapter 2: Accounting for Partnership Firms-Fundamentals
Exercise | Q: 2 | Page no. 97
Solution Why It is Considered Desirable to Make the Partnership Agreement in Writing. Concept: Nature of Partnership.
S
View in app×