Question

In the absence of partnership deed, what is profit sharing ratio of the partners? (Answer in one sentence)

Answer 1

Hey buddy here is ur answer !!

Profit Sharing Ratio: If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared equally by partners, irrespective of their capital contribution in the firm.


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Answer 2

In the absence of partnership deed, the partners share equally the profit and loss arising from the partnership company.

• According to the Indian Partnership Act, 1932 a partnership can be formed by oral or written agreement called Partnership Deed.
• It is not shared on the basis of the capital contributed by the partners; it is only done if the partners agree on the partnership act.
• Therefore, in the case when there is no partnership deed the profits of the firm are divided equally among them.