alleryIf the partnership deed is silent on profit-sharing, profits will be shared in
ACapital ratio
BEqual ratio
CTime ratio
DDrawings ratio
Answer & Solution
Correct answer: B. Equal ratio
1. Section 13 of the Partnership Act controls the default.
2. When the deed is silent, profits and losses are shared equally regardless of capital or time.
3. Capital and time-ratio rules apply only if the deed expressly says so.
4. Hence the default is equal ratio.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 1 "Introduction to Partnership and Partnership Final Accounts", §1.2 ¶§1.2_
Keep practising Indian Partnership Act 1932
Browse all Indian Partnership Act 1932 questions for CA Foundation, or explore more Accountancy topics.
Related questions
Partnership Deed essentially containsA new partner without consent of existing partners can be admittedIf the deed is silent, interest on capital isWhere the partnership deed is silent, interest on partner's loan to the firm is allowed atMaximum number of partners in a partnership firm under the Companies Act 2013 (as amended)Under the Indian Partnership Act 1932, partnership is defined under which section?