Why is capital contribution mentioned in a partnership deed?

Correct answer: To know each partner's capital

Direct answer: Option A, to know each partner’s capital. Capital contribution records the amount invested by each partner in the firm. Reasoning: each contribution is identified; the amount is entered in the relevant capital account; later, agreed changes such as additional capital or withdrawals can be tracked. This supports correct accounting and helps settle rights between partners. Option A is correct because the deed makes every partner’s investment clear. Option B is wrong because advertising expense is an operating expense, not the purpose of recording capital. Option C is wrong because a capital clause does not delete the bank account. Option D is wrong because salary tax or tax matters are not the basic reason for stating capital contribution. The deed may also specify fixed or fluctuating capital and related conditions, but the core answer remains A. Memory cue: capital contribution answers “who invested how much?”