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Question
State whether the following statement is True or False with reasons.
If the partnership deed is silent, partners share profits and losses in proportion to their capital.
Options
True
False
Solution
If the partnership deed is silent, partners share profits and losses in proportion to their capital. - False
Explanation:
As per the provisions made under Indian Partnership Act 1932, when partnership deed is silent about profit and loss sharing ratio, partners are supposed to share profits and losses in equal proportion, and not in their capital ratio
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