Practicing Success
In the absence of a specific agreement, the distribution of profits in a partnership is usually: |
Calculated based on the number of employees in the business Determined by the senior partner Shared equally among the partners Based on the capital contributed by each partner |
Shared equally among the partners |
The correct answer is option 3- Shared equally among the partners. In the absence of agreement, the profits are shared equally between partners according to the provisions of the Partnership Act,1932. If there is no clause in the partnership deed of the partnership firm then the provisions of the Partnership Act, 1932 will be applicable. Some of the provisions are: |