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HomeTamil Nadu HSC (Class 12)accountancyAccounts of Partnership Firms - Fundamentals › In the absence of a partnership deed, profits an…

In the absence of a partnership deed, profits and losses are shared by the partners:

AEqually among all the partners
BIn their capital ratio
CIn proportion to their drawings
DIn proportion to time devoted
Answer & Solution
Correct answer: A. Equally among all the partners
1. Where there is no deed, or the deed is silent, the provisions of the Act apply. 2. Section 13(b) provides that profits and losses are to be shared by the partners equally. 3. The number of partners, the size of their capitals and the time each devotes make no difference to this default. 4. The book repeats the rule in its Points to remember: in the absence of an agreed ratio, profits and losses are shared equally. _Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 3 "Accounts of Partnership Firms - Fundamentals", §3.4_
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