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In which situation is the partnership deed the most authoritative evidence?

Answer and explanation

Correct answer: When partners dispute their rights, profit shares or duties

The partnership deed is the written agreement specifying capital contribution, profit‑sharing ratios, rights, duties and other terms. In disputes among partners about rights or profit shares it serves as the primary and most authoritative evidence because it records the parties’ agreed terms. Options B, C and D relate to transactional or physical proofs and are not as decisive for proving internal partner rights. Exam tip: whenever the question mentions disputes among partners or internal rights, choose the partnership deed as the best evidence.

Related tags

EvidencePartnership DeedPartnership AccountsPartner RightsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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