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What is the main purpose of recording the firm's name in the partnership deed?

Answer and explanation

Correct answer: To clearly identify the firm

The firm's name uniquely identifies it for legal documents, banks and contracts; recording the name ensures clear identification. Although the profit-sharing ratio (option B) is also stated in the deed, that is a separate clause and not the purpose of the name itself. Options C and D are not direct purposes of entering the firm's name in the deed. Exam tip: Memorize "name and address = identity" and keep it distinct from operational clauses like profit-sharing ratio.

Related tags

Partnership AccountsPartnership DeedFirm IdentificationAccountancyClass 12Partnership Accounts Basic ConceptsClass 12 Mcq

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