In a partnership firm, partners share profit and loss in the ratio of . If the firm incurred a loss of during the year, then calculate the amount of loss to be shared by partners.
- AEqually
- BAccording to profit sharing ratio
- CAccording to gaining ratio
- DAccording to sacrificing ratio
Solution & Step-by-step Explanation
In the absence of any specific clause in the partnership deed stating otherwise, losses must always be shared in the exact same manner as profits—which is the pre-determined profit sharing ratio.