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A, B, and C agreed in the deed to treat capital ratio as profit ratio. Their capitals are rupees two lakh, three lakh, and five lakh. In what ratio will profit be shared?

Answer and explanation

Correct answer: Two ratio three ratio five

If the deed treats capital ratio as profit ratio, that ratio applies. A clear deed term overrides the general rule.

Related tags

Capital RatioProfit RatioDeed ProvisionPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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