Accountancy Part AAccounting for Partnership

In a partnership firm, without written agreement, A invested three ti…

In a partnership firm, without written agreement, A invested three times more than the amount invested by B. In the absence of written agreement among partners, in what ratio will the profits be shared?

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → 50:50

NCERT (2026-27 edition):
Provisions of Partnership Act Relevant for Accounting – “… (a) Profit Sharing Ratio: If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared equally by partners, irrespective of their capital contribution in the firm.”