What Is A Partnership Account?

Partnership is the relation between person who has agreed to share the profits of the business carried on by all or any of them acting for all. Partnership is created by oral or written agreement. If the terms and conditions of a partnership deed are not clearly written at any time it will then be settled according to the provisions of the partnership act of 1932. While taking the partnership firm as its customer the banker should take different considerations. The banker shall have to study the partnership deed of the firm carefully. He should keep a track of the changes made therein from time to time as the firm's dealing is governed with him by such deed. The account must be opened and operated in the name of firms and not in the name of any partner. All documents must be signed by all the partners of the firm.

The banker must get full signature of all the partners together with their names and addresses. A declaration and consent of all the partners should be obtained in regard to cheques drawing and disbursement. The accounts of partnership firm are operated according to the instructions at the time of operating the firm's account.