Why is a written partnership deed considered better?

Correct answer: Because evidence remains available

The direct answer is A: a written partnership deed is better because evidence remains available. A partnership deed records the mutually agreed terms of the partners, such as capital, profit sharing, duties, drawings, interest, and settlement rules. When terms are written, each partner can refer to the same document. This reduces misunderstanding and helps resolve disputes. Option A is correct because the document acts as evidence of what was agreed. It is not merely a formality; it provides clarity and protection. Option B is wrong because writing a deed cannot automatically double sales. Sales depend on business activity, customers, prices, and many other factors. Option C is wrong because a deed does not make tax disappear; the firm must follow applicable tax laws. Option D is wrong because preparing a deed does not close the bank account. In fact, written authorization may help clarify how the account is operated. A written deed is therefore safer and more useful than relying only on oral promises. Memory cue: written terms mean proof, clarity, and fewer disputes; they do not guarantee profit or remove legal obligations.