Accountancy Part AAccounting for Partnership

According to partnership Act, if the deed is silent then the profit s…

According to partnership Act, if the deed is silent then the profit sharing ratio will be: (Assuming there are only two partners)

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Equally

When the deed says nothing, the Indian Partnership Act applies: profits and losses are shared equally, whatever the capitals.

NCERT (2026-27 edition):
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.”