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Question

A,B and C are partners in a firm. They do not have a Partnership Deed. At the end of the first year of the commencement of the firm, they have faced the following problems:
A and B having contributed larger amounts of capital, desire that the profits should be divided in the ratio of their capital contribution but C does not agree.
State how you will settle these disputes if the partners approach you for the purpose.

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Solution

In the given situation A and B are wrong in their claims.
In the absence of partnership deed,the profits should be divided equally among the partners irrespective of the amount of capital they have contributed.
Though A and B have contributed larger amounts of capital,still they have to share profits equally along with C.

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