The partnership deed contains a clause that no oral agreement shall be valid unless amended in writing. What is the primary accounting effect of this provision?

Correct answer: Accounts and accounting entries will be changed only on the basis of a written amendment

The clause mandates that any change in the deed must be evidenced by a written amendment. Therefore accounting adjustments (e.g., changes in profit sharing, interest on capital, partner liabilities) will be recorded only when a written amendment to the deed exists. Oral agreements will not be treated as valid evidence for changing accounts. Option B is incorrect because it contradicts the clause by treating oral agreements as acceptable evidence. Options C and D are incorrect because they assert automatic effects; changes like profit equalisation or stopping interest occur only if the deed is amended in writing, not automatically. Exam tip: when answering such questions, look for phrases like “written amendment” or “no oral modification” in the deed — they determine whether accounting entries can be altered.