According to the deed, what should be done before distributing profit?

Correct answer: Read appropriations given in the deed

The direct answer is option A: read the appropriations given in the deed. Profit should not be distributed by guesswork. First identify the deed’s rules about partner salary, commission, interest on capital, interest on drawings and any other permitted appropriation. Then calculate these items in the proper manner and distribute the remaining profit according to the agreed ratio. Option A is correct because reading the deed is the necessary first step. Option B is wrong because selling all assets is not required for ordinary profit distribution and may destroy the business. Option C is wrong because closing only the sales account does not reveal the complete profit or the partners’ rights. Accounts for expenses, income and appropriations must also be considered. Option D is wrong because customers do not decide how partners divide profit; that matter is governed by the deed or applicable law. A weak student should remember that the deed is the firm’s instruction book. Read it before making entries or dividing profit. Memory cue: deed first, appropriations next, distribution after that.