Read the passage given below and answer the question:

Teesha and Ritik are partners in a firm without any agreement. Due to lack of agreement they realised that there was contradiction between them on one issue or the other so they decided to enter into a written agreement with regard to different terms and conditions.

As per the agreement they will be sharing profits in the ratio of 3 : 2. At the beginning of 2022-2023 i.e. 1^st April 2022 their capital were ₹60,000 and ₹40,000 respectively. They earn a profit of 30,000 for the year ending 31^st March 2023. According to agreement, both Teesha and Ritik are entitled to ₹1,000 per month as salary and 5% p.a interest on their capital. They are also to be charged an interest of 5% p.a on their drawings, which was 12,000 for Teesha and ₹8,000 for Ritik for the year 2022-2023.

Identify the written agreement entered by Teesha and Ritik, containing terms of the agreement.

Partnership Deed

The correct answer is Option (3) → Partnership Deed

A partnership deed is a legal document that outlines the terms and conditions under which a partnership operates. It is a written agreement between the partners that defines the rights, responsibilities, and obligations of each partner and establishes the rules for the management and operation of the partnership.