Multiple choice

In the absence of any provision in the partnership agreement, profits and losses are shared

  1. in the ratio of capitals contributed

  2. in accordance with Partnership Act.

  3. in the ratio of loans given by them to the firm

  4. as per Income Tax Act.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In accordance with Partnership Act, the profit or loss divided equally.

Keep practicing — related questions