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In the absence of partnership deed profit sharing ratio will be:
  • a)
    Equal ratio irrespective of partners capitals.
  • b)
    Profits will not be distributed
  • c)
    Capital Ratio
  • d)
    Senior partner will get more profit
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
In the absence of partnership deed profit sharing ratio will be:a)Equa...
When there is no partnership deed or partnership deed is prepared but it is silent on profit sharing ratio, in such a case rules of Partnership Act, 1932 will be applicable. According to which, profits or losses will be shared by the partners equally irrespective of their capitals.
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In the absence of partnership deed profit sharing ratio will be:a)Equal ratio irrespective of partners capitals.b)Profits will not be distributedc)Capital Ratiod)Senior partner will get more profitCorrect answer is option 'A'. Can you explain this answer?
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