Neha contributed and Saloni as capital. What will be Saloni's share in profits if the partnership agreement is silent regarding profit-sharing?
- AOne third of total profit.
- BOne fourth of total profit.
- CHalf of total profit.
- DTwo third of total profit.
Solution & Step-by-step Explanation
In accordance with Section 13(b) of the Indian Partnership Act, 1932, if the partnership deed/agreement is silent regarding the profit-sharing arrangement, all partners are entitled to share profits and losses equally, regardless of their initial capital contributions.Since there are two partners (Neha and Saloni), the profit-sharing ratio will be .Therefore, Saloni's share will be exactly half () of the total profits.