After allowing salary in profit distribution on what basis is remaining profit shared?

Correct answer: Profit sharing ratio

The direct answer is A: after allowing salary, the remaining profit is shared in the profit-sharing ratio. Salary is an appropriation of profit, not the final division of all profit. For example, if profit is Rs 100000 and salary of Rs 20000 is allowed, the remaining Rs 80000 is divided according to the agreed ratio, such as 3:2. Option A is correct because the partnership agreement determines the sharing ratio. Option B, age, is irrelevant unless an unusual agreement specifically says otherwise. Option C, bank passbook, only provides bank transaction information and cannot decide partners’ profit shares. Option D, stock list, helps determine inventory and profit but is not a basis for dividing the remaining profit. Exam cue: salary is adjusted first; the balance follows the profit ratio.