Question on: JAMB Accounting - 2022

The major point of agreement carried by the partnership deed is?

A

5% interest annum on any loan

B

an oral agreement among the partners

C

method of inhertance by the partners' children

D

the profit and loss sharing ratio of the partners

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Correct Option: D

The major point of agreement carried by the partnership deed is the profit and loss sharing ratio of the partners.

The partnership deed is a legal document that outlines the terms and conditions of the partnership, including how profits and losses will be shared among the partners. It specifies the percentage or ratio in which the partners will distribute the financial outcomes of the business. This helps in maintaining transparency and avoiding disputes among the partners regarding the distribution of profits and losses.

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