A partnership is defined as a voluntary association of people who come together for procuring common objectives. Entering into partnership requires a clear agreement with respect to the terms, conditions and all aspects regarding the partners so that to avoid misunderstanding among the partners in future. This agreement can be oral or written. Although it is not essential to have a written agreement.
It is better to have a written agreement as it serves as an evidence of the conditions agreed upon. This written agreement that specifies the terms and conditions and governs the partnership is called the partnership deed. This partnership deed generally includes the following aspects:
Price Waterhouse Coopers was a Partnership Firm earlier
Price Waterhouse Coopers, renowned as one of the world's top accountancy firm has been formed in 1998 by the merging two companies, Price Waterhouse and Coopers and Lybrand, both the firms had historical roots going back some 150 years to the 19th century Great Britain. In 1850, Samuel Lowell Price started his accounting business in London. In 1865, he joined in partnership with William H. Holyland and Edwin Waterhouse. As the firm grew up in size, qualified members of its professional staff were appointed to the partnership. By the late 1800s, Price Waterhouse had gained momentous recognition as an accounting firm.
- Name of organisation
- Type of business and location of business
- Time Duration of business
- Capital investment made by each partner
- Sharing of profits and losses
- Allocation of Duties and obligations of the partners
- Withdrawals and Salaries of the partners
- Terms involved in admission, retirement and expulsion of a Partner
- Interest on capital and drawings
- Procedure for dissolution of the organisation
- Preparation of accounts and conducting an audit for the same
- Ways to solve disputes