Question

Dev, Swati and Sankar were partner in a firm sharing profit in the ratio of 2:2:1 .on 31-3-2020 their balance sheet was as follows: on 30th june 2020 dev died.accordingly to partnership agreement Dev was entitled to interest on capital at 12%per annum.prepere dev account to be presented to his executors

Answer 1

Answer:

The ratio in which the profits or losses of a business are shared. For a partnership, the profit-sharing ratios will be set out in the partnership agreement. This will show the amount, usually given as a percentage of the total profits, attributable to each partner....

Division of Profits. 2. When the investments done by all the partners for the equal amount of time, the profit or loss will be distributed between the partners in the ratio of their investments.