Question

In the absence of an agreement to the contrary, every partner is bound to share losses ______________.

• A. Equally
• B. In proportion to capital
• C. In proportion to their private assets
• D. $50\%$ loss equally and balance $50\%$ in their capital ratio

Answer 1

The correct option is A Equally

According to the Partnership Act 1932, every partner has an equal right to participate in the conduct and management of the business and has an equal share in the profit or loss of the firm, mentioned otherwise.