Practicing Success
Read the following information and answer the questions : A and B entered into partnership to supply stationery items without any terms and conditions. A contributed ₹ 1,00,000 as capital while B contributed 20,000 only but he allow his building to be used as the firm office. After running business for nearly nine months they felt urgency of funds and same was fulfilled by B by providing ₹ 80,000 as loan to the firm. At the end of the accounting year, they made a profit of ₹50,000. They decide to expand their business in future by admitting C into the firm and also to make agreement in writing containing all the terms and conditions. |
Select the ratio in which A and B will share divisible profits. |
5 : 1 1 : 1 2 : 1 4 : 1 |
1 : 1 |
The correct answer is Option 2- 1 : 1. When there is no clause regarding sharing of profit and loss between the partners then profits are distributed equally between the partners so divisible profits are share between partners in 1:1. 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: |