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If the partnership deed does not specify the profit-sharing ratio, in what ratio will three partners share the profit?

Answer and explanation

Correct answer: Equally

When the deed is silent, partners share profits equally by default — each partner gets an equal share. Sharing in proportion to capital applies only if the deed or partnership agreement expressly provides for it or when partners have mutually agreed. The closest distractor (capital ratio) is incorrect here because capital-based sharing is valid only when specified in the deed. Exam tip: If the partnership deed is silent about profit ratio, answer ‘‘Equally’’; consider capital/time/salary ratios only when explicitly stated in the deed or agreement.

Related tags

Partnership AccountsPartnership DeedProfit SharingEqual ShareAccountancyPartnership Accounts Basic ConceptsClass 12 Mcq

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