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If the deed says partner A gets ten percent commission on profit and remaining profit is shared equally how will profit left after commission be shared?

Answer and explanation

Correct answer: Equally among partners

The direct answer is option A: the profit remaining after commission will be shared equally among all partners. The deed creates two steps. First, partner A receives the stated 10 percent commission on profit. Second, the amount left after that commission is distributed according to the next instruction in the deed, namely equally. For example, if the profit were Rs 100, A’s commission would be Rs 10 and the remaining Rs 90 would be divided equally among the partners. The number of partners is not stated, so no individual amount can be calculated, but the sharing rule is clear. Option A is correct because the deed expressly says ‘equally’. Option B is wrong because A receives only the commission, not the entire remaining profit. Option C would apply only if a capital ratio were prescribed. Option D is wrong because drawings ratio does not control profit sharing here. Memory cue: follow the deed in order—commission first, remaining profit as instructed.

Related tags

CommissionRemaining ProfitDeed

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