A & B are partners in a partnership firm with profit sharing ratio of 5:4 with capitals of ₹ 100000 each. A meet with an accident and not coming to office from the last 8 months. B demands extra salary of ₹ 80000 for 8 months for extra work he has to manage in absence of A and also wants profit to be distributed in proportion of capitals, but A denies. What will be done according to the Indian Partnership Act,1932?

B will be given salary, but profit will be distributed according to profit sharing ratio. Neither B will get salary nor profits will be divided in capital proportion. Profits will be distributed in capital ratio, but B will not get any salary. Both will be done according to B's demand.

Neither B will get salary nor profits will be divided in capital proportion.

According to Indian Partnership Act,1932 if nothing is mentioned in partnership deed about salary then salary will not be given to any partner whether if he does extra work or not and if profit sharing ratio is mentioned then profit will be distributed in that ratio, if partners agree only then profit can be distributed in capital proportion.