Question

In Case of insufficient profits i.e., profits less than interest on capital then the profits are distributed in :
a)Profit sharing ratio
b)Capital ratio
c)Not distributed
d)None of these

Answer 1

the answer is choice A

Answer 2

Answer:the answer is option (b)

Explanation:the amount of profit will be distributed in the ratio of capital as partners get profit by way

of interest on capital only