| Answer:
What items to be included in a usual partnership agreement?
Generally, the following are the important items that need to be included in any partnership agreement:
- Amount of capital to be contributed by individual partner;
- Profit sharing ratio;
- Salaries to be paid to the partners;
- Interest on capital contributed;
- Interest on loans from partners
- Drawings
- Interest on drawings,etc
In the event, there is no partnership agreement, the terms should follow under the MALAYSIAN Partnership Act 1961 which are:
- All partners should contribute an equal amount of capital;
- Partners should not receive salaries;
- Interest on capital or on drawings is not allowed;
- Partners should share profits and losses equally;
- An interest of 8% should be paid on loans from partners.
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