Multiple choice

If the profits are insufficient to pay interest on capital as per deed,

  1. interest should be given @ 12% p.a.

  2. partners should divide profits equally.

  3. profits should be divided in profit sharing ratio.

  4. profits should be divided in capital ratio.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The profits should be divided in the capital ratio.

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