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Treating Manager as Partner

Jaspal and Ro...

Question

Jaspal and Rosy were partners with capital of 10 lakh and 5 lakh each. They don't have a partnership deed. Jaspal wants that profits be shared in the capital ratio. Rosy convinced him that they should be shared equally. Explain how Rosy would have convinced Jaspal for sharing profits equally?

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Solution

Dear Student,
In the absence of partnership deed, profits and losses are distributed among partner in equal ratios according to the provisions of Partnership Act 1932. So Jaspal cannot distribute profits in capital ratio, Rosy must has convinced Jaspal by stating the provisions of Partnership Act.
Regards

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