Neha contributed and Saloni as capital. What will be Saloni's share in profits if the partnership agreement is silent regarding the profit-sharing ratio?
- 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 the absence of any explicit partnership deed or agreement provisions regarding profit distribution, the Indian Partnership Act, 1932 mandates that profits and losses must be shared equally among all partners, regardless of variations in their initial capital contributions. Hence, Saloni gets half of the total profit.