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Question
State whether the following statement are True or False.
If the partnership deed is silent, partners share profits and losses equally.
Options
True
False
Solution
True .
Explanation: Generally, partners can share profits and losses in any ratio as mentioned in the deed. But if the deed is silent, then according to the provisions of Indian Partnership Act, 1932, the profits and losses must be shared equally among the partners. Hence, the above statement is true.
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|
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| Additional Information | Amit (₹) | Iqbal (₹) |
| Drawings made on 1st May, 2022 | 30,000 | |
| Borrowed from the firm on 1st July, 2022 | 10,000 | |
| Capital Balances on 31st March, 2023 | 75,000 | 10,000 (Dr) |
| Divisible profits for the year 2022-23 credited to the Partners' Capital Accounts | 9,000 | 9,000 |
You are required to:
- Give the closing journal entry for interest on loan due from Amit.
- Find the opening capital balance of the partners on 1st April, 2022, by preparing the Partners' Capital Accounts for the year 2022-23.
