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What is the main advantage of a written deed over an oral partnership?

Answer and explanation

Correct answer: Clear proof of terms

The governing concept is documentary evidence of the partners’ agreement. A written partnership deed records important terms such as capital contribution, profit-sharing ratio, drawings, remuneration, interest, duties, and procedures for changes or disputes. Because the terms are available in a definite form, partners can refer to the document instead of relying only on memory or conflicting statements. Therefore, option A is correct and is especially useful when a disagreement arises. A written deed does not reduce the physical weight of goods, automatically remove bank charges, or eliminate taxes; those matters depend on operations, banking arrangements, and law.

Related tags

Written DeedOral PartnershipProof Of TermsPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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