In partnership firm, profits and losses are shared among the partners______________
Answer & explanation
Correct answer: option 1
The correct answer is option 1- As per agreement.
The profits and losses of the firm are distributed among the partners as per agreement.
In a partnership firm, profits and losses are shared as per the partnership agreement between the partners. If there is an agreement, it is followed. If no agreement exists, then as per the Indian Partnership Act 1932, profits and losses are shared equally, not based on capital contribution or personal wishes.