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

Answer 1

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.