Question

Where there is no agreement to share profits in a partnership, but one partner invested twice as much capital in the partnership as the other over the course of the year, how are profits to be split?

A. In the ratio of time devoted to the partnership.
B. In the ratio of capital invested.
C. The profits must remain in the partnership and not be distributed.
D. Equally.
E. In accordance with which partner earned them.

Answer 1

B. Equally

Explanation: if there is no agreement between the partners than the profit is shared equally among the partners . In the absence of partnership profit is distributed equally among all the partners.