Multiple choice

In the absence of agreement to the contrary all partners are

  1. not entitled to share profits

  2. entitled to share in capital ratio

  3. entitled to share in proportion to their ages

  4. entitled to share profits equally
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under the Indian Partnership Act, in the absence of any agreement to the contrary, partners share profits equally regardless of their capital contributions. This is a default rule meant to ensure equality among partners. The share in capital ratio or age-based distribution would only apply if explicitly agreed upon by partners.

Keep practicing — related questions