Why is the accounting year mentioned in a partnership deed?

Correct answer: To fix the period for calculating profits and preparing final accounts

The accounting year is specified to fix the period for preparing profit & loss and final accounts. A defined accounting period ensures correct profit allocation, tax calculation and timely closing of books. Option C may seem plausible because partner remuneration can be mentioned in the deed, but specifying the accounting year is about the reporting period, not about setting salaries. Options B and D are unrelated. Exam tip: when answering, identify the accounting period dates in the deed—those dates determine profit sharing and the timing of final accounts.