State with reasons, whether the following statements are true or false: Partners can share profits or losses in their capital ratio, when there is…
CA Foundation · Accounting · RTP · September 2024
State with reasons, whether the following statements are true or false: Partners can share profits or losses in their capital ratio, when there is no agreement.
Suggested Answer and Working Notes:
False: According to Partnership Act, in the absence of any agreement to the contrary profits and losses are to be shared equally among partners.
Topics: Partnership and LLP Accounts
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