2017 · Q70
In the absence of any provision in the partnership agreement. profits and losses arc shared by the partners
General Accounting Principles, Auditing and InsuranceFinal accounts
- Ain the ratio of the capital of partners
- Bequally
- Cin the ratio of loans given by them to the partnership firm
- Din the ratio of the initial capital introduced by the partners
Explanation
Section 13(b) of the Indian Partnership Act, 1932 provides that, in the absence of any agreement, partners share profits and losses equally, irrespective of their capital contributions or loans. Capital-ratio and loan-ratio sharing apply only if agreed. Hence B.