If two partners have specified an equal profit-sharing ratio in the partnership deed, how will the profits be distributed?

Correct answer: Shared equally — both partners receive equal shares (each 50%)

The partnership deed governs profit distribution. When the deed specifies an equal ratio, profits are shared equally — each partner gets 50%. Option B is incorrect because sharing by capital applies only if the deed specifies capital-based sharing; the deed's stated ratio takes precedence. Options C and D are implausible given a clear deed provision. Exam tip: In problems always check the partnership deed first — its profit-sharing clause overrides general assumptions unless stated otherwise.