In the absence of an agreement, what is the profit-sharing ratio among partners? MCQ with Answer and Explanation

In the absence of an agreement, what is the profit-sharing ratio among partners?
A. Equal
B. As decided by the senior partner
C. Capital Ratio
D. Time devoted to business
Answer: Option A
Solution (By JKSSB Mock Tests)
Under the Indian Partnership Act, 1932, if the deed is silent, all partners share profits and losses equally.

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Practice More Accountancy and Book Keeping Questions

Question #1
Bank charges debited by the bank will be ________ when starting with an overdraft balance as per Pass Book.
A. Added
B. Ignored
C. Multiplied
D. Deducted

Correct Answer: Option D


Explanation:
Bank charges increase the overdraft in the pass book. To arrive at the cash book overdraft (which is lower since it missed the charge), it must be deducted.

Question #2
A: The Public Account of India includes funds like the Provident Fund. R: The government can withdraw money from the Public Account without parliamentary approval. Choose the correct option.
A. Both A and R are true but R is NOT the correct explanation of A
B. A is true but R is false
C. A is false but R is true
D. Both A and R are true and R is the correct explanation of A

Correct Answer: Option D


Explanation:
The Public Account of India holds money like Provident Funds, where the government acts as a banker. Since these funds belong to others, the government can make payments from this account without parliamentary approval. Both are true and R explains A.

Question #3
In a partnership, interest on capital is allowed only when:
A. The firm has cash
B. It is provided in the partnership deed
C. The firm makes profit
D. It is mandatory under law

Correct Answer: Option B


Explanation:
Interest on capital is payable only if the partnership deed so provides, and only out of profits.