Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

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

Options:

In partners' capital ratio

1 : 2

2 : 1

Equally

Correct Answer:

Equally

Explanation:

The correct answer is Option (4) → Equally

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.