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    Question

    Under the Indian Partnership Act, 1932, Section 13, in

    the absence of an agreement to the contrary, how should profits be shared among partners?
    A Equally among all partners Correct Answer Incorrect Answer
    B In proportion to capital contributed Correct Answer Incorrect Answer
    C In proportion to time spent in business Correct Answer Incorrect Answer
    D At the discretion of senior partner Correct Answer Incorrect Answer
    E Equally after deducting losses Correct Answer Incorrect Answer

    Solution

    Section 13 of the Indian Partnership Act, 1932, establishes the default position that all partners are entitled to equal shares in the profits of the firm unless there is an express or implied agreement to the contrary. Notably, unless specifically agreed, partners are not entitled to salary for their work, interest on capital contributions, or remuneration for management, emphasizing partnership as a relationship of mutual trust rather than employment.

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