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If a partnership deed is silent on how profits are to be shared, partners share ...


Question

If a partnership deed is silent on how profits are to be shared, partners share profits

Options

A) in a ratio of the value of business secured by each partner for the partnership

B) in the ratio of partners' capital contributions

C) in an equal proportion, irrespective of partners' capital contributions

D) according to duties performed by each partner

The correct answer is C.

Explanation:

When partnership deed is silent on how profits are to be shared, profit and loss should be shared in an equal proportion, irrespective of partners' capital contributions.

Explanation provided by Oni Victor


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Dicussion (1)

  • Oni Victor

    When partnership deed is silent on how profits are to be shared, profit and loss should be shared in an equal proportion, irrespective of partners' capital contributions.

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