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If the partnership deed specifically states that profit will be shared in capital ratio, which statement is correct?

Answer and explanation

Correct answer: Profit will be shared in capital ratio

If the deed gives a specific profit ratio, it must be followed. Equal sharing applies only when no ratio is given.

Related tags

Profit RatioCapital RatioSpecific ClausePartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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