Read the following passage and answer the question.

Rita, Sudha, and Nitu decided to do transport business in partnership. For this purpose, they did not prepare any deed. They introduced their capitals, ₹50,000, ₹60,000 and ₹40,000 respectively and commenced business from 1st April. On the same date, Nitu also provided ₹15,000 as a loan to the firm on the requirement. At the end of the first financial year, the firm earned a net profit of ₹10,000 (excluding interest on loan). Nitu asked for interest on the loan at 10% p.a, while Sudha asked for interest on capital at 5% p.a. But for both terms, Rita did not agree. 

In which ratio, Rita, Sudha, and Nitu will share the profit ?

1:1:1

The correct answer is option 3- 1:1:1.

Profits are shared equally i.e. 1:1:1.

Since no partnership deed was prepared, the provisions of the Indian Partnership Act, 1932 will apply by default. In the absence of an agreement to the contrary, all partners are entitled to equal share in the profits (and losses) of the firm." Therefore, regardless of their capital contributions (₹50,000, ₹60,000, and ₹40,000), the profits will be shared equally among Rita, Sudha, and Nitu.