Sarthaks Test
+1 vote
557 views
in Accounts by (64.1k points)
recategorized by

Jaspal and Rosy were partners with capital contribution ofRs.10,00,000 and Rs.5,00,000 respectively. They do not have a Partnership Deed. Jaspal wants that profits of the firm should be shared in their capital ratio. Rosy convinced Jaspal that profits should be shared equally. Explain how Rosy would have convinced Jaspal for sharing the profit equally.

1 Answer

+1 vote
by (106k points)
selected by
 
Best answer

In the absence of a partnership deed, the provisions of the Indian Partnership Act, 1932, apply. According to the Act, if there is no agreement regarding the ratio in which profits are to be shared, then profits (or losses) are to be shared equally among all the partners. Therefore, in this situation, Jaspal’s view of distribution of profits in the capital ratio is not acceptable, and Rosy must have convinced her stating the provisions contained in the Partnership Act, 1932.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...