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Ram and mohan are partners in a firm without any partnership deed. Their capitals are: Ram Rs.8,00,000 and Mohan Rs.6,00,000 .Ram is an active partner and looks afterthe business. Ramwants that profit should be share in proportional of captials. statewith reasons whether his claim is valid or not.?
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Ram and mohan are partners in a firm without any partnership deed. The...
Validity of Ram's Claim for Profit Sharing
Background Information:
- Ram and Mohan are partners in a firm without any partnership deed.
- Ram's capital is Rs. 8,00,000 and Mohan's capital is Rs. 6,00,000.
- Ram is an active partner and looks after the business.
Ram's Claim:
Ram wants that profit should be shared in proportional of capitals.
Validity of Ram's Claim:
Ram's claim is valid because of the following reasons:
1. Absence of Partnership Deed: In the absence of a partnership deed, the Indian Partnership Act, 1932, governs the partnership. As per Section 13 of the Act, profits and losses are to be shared equally among the partners, unless there is an agreement to the contrary. Since there is no partnership deed, Ram's claim for proportional profit sharing based on capital is valid.
2. Active Partner: Ram is an active partner who looks after the business. He contributes his time, effort, and skills, in addition to his capital, to the partnership. Therefore, it is reasonable for him to expect a higher share of profits than Mohan, who is a passive partner.
3. Capital Contribution: Ram has invested more capital than Mohan in the partnership, which indicates a greater financial stake in the business. As per the principle of 'no profit without risk,' Ram should receive a higher share of profits commensurate with his higher capital contribution.
4. Business Risk: Ram's active involvement in the business also exposes him to greater business risk. If the business incurs losses, Ram stands to lose more than Mohan. Therefore, it is reasonable for Ram to expect a higher share of profits as compensation for the higher business risk he undertakes.
Conclusion:
In conclusion, Ram's claim for proportional profit sharing based on capital is valid in the absence of a partnership deed. Ram's active involvement in the business, higher capital contribution, and higher business risk justify his claim for a higher share of profits.
Background Information:
- Ram and Mohan are partners in a firm without any partnership deed.
- Ram's capital is Rs. 8,00,000 and Mohan's capital is Rs. 6,00,000.
- Ram is an active partner and looks after the business.
Ram's Claim:
Ram wants that profit should be shared in proportional of capitals.
Validity of Ram's Claim:
Ram's claim is valid because of the following reasons:
1. Absence of Partnership Deed: In the absence of a partnership deed, the Indian Partnership Act, 1932, governs the partnership. As per Section 13 of the Act, profits and losses are to be shared equally among the partners, unless there is an agreement to the contrary. Since there is no partnership deed, Ram's claim for proportional profit sharing based on capital is valid.
2. Active Partner: Ram is an active partner who looks after the business. He contributes his time, effort, and skills, in addition to his capital, to the partnership. Therefore, it is reasonable for him to expect a higher share of profits than Mohan, who is a passive partner.
3. Capital Contribution: Ram has invested more capital than Mohan in the partnership, which indicates a greater financial stake in the business. As per the principle of 'no profit without risk,' Ram should receive a higher share of profits commensurate with his higher capital contribution.
4. Business Risk: Ram's active involvement in the business also exposes him to greater business risk. If the business incurs losses, Ram stands to lose more than Mohan. Therefore, it is reasonable for Ram to expect a higher share of profits as compensation for the higher business risk he undertakes.
Conclusion:
In conclusion, Ram's claim for proportional profit sharing based on capital is valid in the absence of a partnership deed. Ram's active involvement in the business, higher capital contribution, and higher business risk justify his claim for a higher share of profits.
Community Answer
Ram and mohan are partners in a firm without any partnership deed. The...
Ram's claim is invalid as there's no partnership deed existing for profit sharing ratio .
According to the provision of partnership accounting , the profits and losses of the firm are to be shared equally by the partners , irrespective of their capital contribution in the firm if the partnership deed is silent about the profit sharing ratio.
According to the provision of partnership accounting , the profits and losses of the firm are to be shared equally by the partners , irrespective of their capital contribution in the firm if the partnership deed is silent about the profit sharing ratio.
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Ram and mohan are partners in a firm without any partnership deed. Their capitals are: Ram Rs.8,00,000 and Mohan Rs.6,00,000 .Ram is an active partner and looks afterthe business. Ramwants that profit should be share in proportional of captials. statewith reasons whether his claim is valid or not.?
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Ram and mohan are partners in a firm without any partnership deed. Their capitals are: Ram Rs.8,00,000 and Mohan Rs.6,00,000 .Ram is an active partner and looks afterthe business. Ramwants that profit should be share in proportional of captials. statewith reasons whether his claim is valid or not.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Ram and mohan are partners in a firm without any partnership deed. Their capitals are: Ram Rs.8,00,000 and Mohan Rs.6,00,000 .Ram is an active partner and looks afterthe business. Ramwants that profit should be share in proportional of captials. statewith reasons whether his claim is valid or not.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ram and mohan are partners in a firm without any partnership deed. Their capitals are: Ram Rs.8,00,000 and Mohan Rs.6,00,000 .Ram is an active partner and looks afterthe business. Ramwants that profit should be share in proportional of captials. statewith reasons whether his claim is valid or not.?.
Ram and mohan are partners in a firm without any partnership deed. Their capitals are: Ram Rs.8,00,000 and Mohan Rs.6,00,000 .Ram is an active partner and looks afterthe business. Ramwants that profit should be share in proportional of captials. statewith reasons whether his claim is valid or not.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Ram and mohan are partners in a firm without any partnership deed. Their capitals are: Ram Rs.8,00,000 and Mohan Rs.6,00,000 .Ram is an active partner and looks afterthe business. Ramwants that profit should be share in proportional of captials. statewith reasons whether his claim is valid or not.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ram and mohan are partners in a firm without any partnership deed. Their capitals are: Ram Rs.8,00,000 and Mohan Rs.6,00,000 .Ram is an active partner and looks afterthe business. Ramwants that profit should be share in proportional of captials. statewith reasons whether his claim is valid or not.?.
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Ram and mohan are partners in a firm without any partnership deed. Their capitals are: Ram Rs.8,00,000 and Mohan Rs.6,00,000 .Ram is an active partner and looks afterthe business. Ramwants that profit should be share in proportional of captials. statewith reasons whether his claim is valid or not.?, a detailed solution for Ram and mohan are partners in a firm without any partnership deed. Their capitals are: Ram Rs.8,00,000 and Mohan Rs.6,00,000 .Ram is an active partner and looks afterthe business. Ramwants that profit should be share in proportional of captials. statewith reasons whether his claim is valid or not.? has been provided alongside types of Ram and mohan are partners in a firm without any partnership deed. Their capitals are: Ram Rs.8,00,000 and Mohan Rs.6,00,000 .Ram is an active partner and looks afterthe business. Ramwants that profit should be share in proportional of captials. statewith reasons whether his claim is valid or not.? theory, EduRev gives you an
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