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The deed shows A and B capitals as Rs 70000 and Rs 30000 but does not state profit ratio. If the deed is silent about profit ratio, how will profit be shared?

Answer and explanation

Correct answer: Equally

When profit ratio is absent, capital ratio does not automatically apply. Under the general rule, profit is shared equally.

Related tags

Deed SilentCapital RatioEqual ProfitPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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