If the partners mutually agree with the profit sharing ratio, then they share profits .

in capital ratio

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in drawing ratio

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equally

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randomly

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Solution

The correct option is B in drawing ratio
If there is no agreement for the profit sharing ratio, then partners share profit equally. And if the partners mutually agree with the profit sharing ratio, then they share profits in an agreed ratio.

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Similar questions

If the partners mutually agree with the profit sharing ratio, then they share profits ___________.

If the partners mutually don't agree the profit sharing ratio, then they share profits ___________.

Q. If the partners mutually don't agree the profit sharing ratio, then they share profits .

Q. X and Y are sharing profits in the ratio of 2: 1. They admitted Z into the firm with 1/4 shares in profits for which he brings 15,000 as his share of capital. The partners decide to have their capitals according to the new profit sharing ratio. As a result, the adjusted capital of Y will be:

Aditya and Balan are partners sharing profits and losses in 3:2 ratio. They admitted Christopher for 1/4 share in the profits. The new profit sharing ratio agreed was 2:1:1. Christopher brought Rs. 50,000 for his capital. His share of goodwill was agreed to at Rs. 15,000. Christopher could bring only Rs. 10,000 out of his share of goodwill. Record necessary journal entries in the books of the firm?

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If the partners mutually agree with the profit sharing ratio, then they share profits .

The correct option is B in drawing ratioIf there is no agreement for the profit sharing ratio, then partners share profit equally. And if the partners mutually agree with the profit sharing ratio, then they share profits in an agreed ratio.

The correct option is B in drawing ratio
If there is no agreement for the profit sharing ratio, then partners share profit equally. And if the partners mutually agree with the profit sharing ratio, then they share profits in an agreed ratio.