In the absence of any provision in the partnership agreement, profits and losses are shared by the partners
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EPFO AO EO 2017
in the ratio of the capital of partners
Incorrect Answerin the ratio of loans given by them to the partnership firm
Incorrect Answerin the ratio of the initial capital introduced by the partners
Incorrect AnswerExplanation:
- The absence of a specific agreement on sharing ratios among partners defaults to a standard principle in partnership law.
- Option 1: In the ratio of the capital of partners - Not applicable unless specified in the agreement.
- Option 2: Equally - Correct. Without a specified agreement, the profits and losses are shared equally among partners, according to standard partnership rules.
- Option 3: In the ratio of loans given by them to the partnership firm - Loans are separate obligations and don't affect profit-sharing ratios.
- Option 4: In the ratio of the initial capital introduced by the partners - Not the default rule; it requires explicit agreement.
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