Which document governs the rights, duties and liabilities of each partner in the partnership firm?

Partnership Deed

The correct answer is option 1- Partnership Deed.

Partners can determine their mutual rights and duties by a contract called partnership deed, which determines aspects of general administration, such as which partner will do what work, what will be their share in profits, etc. It may be varied by express or implied consent of all the partner. A partnership deed is a legal document that outlines the terms and conditions under which a partnership operates. It includes details such as the name of the partnership, the names and roles of the partners, their capital contributions, profit-sharing ratios, rights and responsibilities, decision-making procedures, and procedures for admission or withdrawal of partners. The partnership deed serves as a contract between the partners, establishing the framework for how the partnership will be managed and governed.

OTHER OPTIONS-

• Cash Flow Statement- A cash flow statement is a financial statement that provides information about the cash inflows (receipts) and outflows (payments) of a business over a specific period of time. It is divided into three main sections: operating activities, investing activities, and financing activities.

• Trial Balance- A trial balance is a list of all the general ledger accounts of a business and their respective debit or credit balances at a specific point in time, usually at the end of an accounting period, such as a month or year. The purpose of the trial balance is to ensure that the total debits equal the total credits.

• Fund Flow Statement- A fund flow statement, also known as a statement of changes in financial position, is a financial statement that provides information about the sources and uses of funds (cash and non-cash) by a business over a specific period of time.