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Which capital-related detail may be specified in a partnership deed?

Answer and explanation

Correct answer: Capital contribution of each partner

A partnership deed commonly records each partner’s capital contribution (the amount each partner invests) because this determines capital accounts and affects interest on capital or profit allocation. Options B (profit-sharing ratio), C (duration/dissolution terms) and D (management rights and duties) are typical deed clauses but are not capital-specific details, so A is the correct capital-related choice. Exam tip: Memorize common deed clauses (capital, profit ratio, duties, duration); for capital questions focus on ‘who invested how much’ and related terms like interest on capital or fixed vs. fluctuating capital.

Related tags

Partnership DeedCapital ContributionPartnership AccountsAccountancyClass12Partnership DeedPartnership Accounts Basic ConceptsClass 12 Mcq

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