If the deed allows reimbursement of expenses to a partner, when will it apply?

Correct answer: When the partner spent for the firm

Direct answer: Option A, when the partner spent money for the firm. Reimbursement means repayment of money that a person has properly paid on behalf of another person or organisation. Here, a partner may pay a firm expense personally, such as an authorised business purchase or official travel, and the firm can repay that amount according to the deed and supporting evidence. Reasoning: check that the expense was for firm business; verify the amount and proof; exclude any personal part; record the firm’s liability or repayment. Option A is correct. Option B is wrong because private clothes are a personal expense unless an unusual, clearly authorised business rule applies; they are not normally reimbursed. Option C is wrong because lack of profit does not decide whether a genuine firm expense was incurred, although payment timing may be affected. Option D is wrong because losing a bank passbook is not itself the stated basis for partner reimbursement. Memory cue: reimbursable means spent for the firm, not spent for oneself.