Partnership deed provides that loss due to insolvency of a partner shall be shared by the remaining partners in the profit sharing ratio. There is a loss due to the insolvency of a partner. This will be shared by the remaining partner ___________.
The correct option is D In the profit sharing ratio
Partnership - A partnership is a form of business where two or more people share
ownership, as well as the responsibility for managing the company and the
income or losses the business generates. That income is paid to partners, who
then claim it on their personal tax returns – the business is not taxed
separately, as corporations are, on its profits or losses.
There may be agreement or not among partners for the partnership firm. In case if they does not have agreement for partnership, there is a standard agreement given in the Indian partnership act, 1932. If partners make agreement of partnership then the firm will work according to clauses mentioned in agreement.
Therefore, if partnership deed provides that loss due to insolvency of a partner shall be shared by the remaining partners in the profit sharing ratio, then this will be shared by remaining partners in the profit sharing ratio.
Partnership - A partnership is a form of business where two or more people share ownership, as well as the responsibility for managing the company and the income or losses the business generates. That income is paid to partners, who then claim it on their personal tax returns – the business is not taxed separately, as corporations are, on its profits or losses.
There may be agreement or not among partners for the partnership firm. In case if they does not have agreement for partnership, there is a standard agreement given in the Indian partnership act, 1932. If partners make agreement of partnership then the firm will work according to clauses mentioned in agreement.
Therefore, if partnership deed provides that loss due to insolvency of a partner shall be shared by the remaining partners in the profit sharing ratio, then this will be shared by remaining partners in the profit sharing ratio.
