Question

when partnership deed is silent partners share profits of the firm according to capital ratio this sentence agree or disagree ​

Answer 1

Ans: A partnership is an agreement between two or more persons to share profits and losses of the firm. According to Section 4 of the Indian Partnership Act, 1932, “Partnership is the relation between persons who have agreed to share profits of a business carried on by all or any one of them acting for all."

Answer 2

Disagree, When the partnership deed is silent, The profit ratio of the firm is shared equally.

Explanation:

When the partnership deed is silent, The profit ratio of the firm is shared equally.

• A partnership deed represents an agreement between the partners of a firm that states the terms and conditions of their partnership.

• It precisely defines the necessary conditions such as considerable profit/loss sharing, salary, interest on capital, draw, admission of the new partner, and so on.

• If the ratio is not specified in the deed, the profit and loss are to be shared equally by all the partners, irrespective of their financial contribution to the business.