Question

Mohan and Sham are partners in a firm. State whether the claim is valid if the partnership agreement is silent in the following matters:

"Mohan has contributed Rs. 20.000 and Shyam Rs. 50.000 as capital. Mohan wants an equal share in profits."

Options

• Valid

• Invalid

• Cannot be determined.

• None of the above

Answer 1

Valid

Explanation:

If the profit-sharing ratio is not specified in the partnership agreement, gains and losses are to be shared equally by all partners, regardless of their capital contribution.