Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

A and B are partners in a firm sharing profits in ratio of 3:2. A earns some profit by entering into some transaction using firm resources. Who share this profit?

Options:

Only A

Only B

Both A & B

None of the above

Correct Answer:

Both A & B

Explanation:

If a partner derives any profit for him/herself from any transaction of the firm or from the use of the property or business connection of the firm or the firm name, he/she shall account for the profit and pay it to the firm. Therefore, A has to share profit with B.