If the partnership deed gives profit sharing ratio as three to two but capitals are equal, in which ratio will year end profit be shared?

Correct answer: Three to two

The direct answer is option A: profit will be shared in the ratio three to two. In partnership accounting, the profit-sharing ratio written in the deed normally controls distribution of profit. Equal capitals do not replace that agreed ratio. Step by step, the deed specifies 3:2; the year-end profit is determined; three parts go to one partner and two parts go to the other, after any required adjustments. For example, if distributable profit were Rs 5,000, the total would be five parts, so the shares would be Rs 3,000 and Rs 2,000. Option A is correct because it follows the express agreement. Option B is wrong because equal sharing applies only when that is agreed or when the relevant rule requires it. Option C is wrong because capital ratio is not the stated profit ratio. Option D is wrong because drawings ratio does not determine profit sharing unless expressly provided. Memory cue: profit follows the deed, not automatically the amount of capital.