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If the deed gives profit ratio as two to two to one but no separate loss ratio how will losses be distributed?

Answer and explanation

Correct answer: In two to two to one

If no separate loss ratio is given losses are generally shared in profit ratio. In exams use profit ratio as base.

Related tags

Loss RatioProfit RatioDeedProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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