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WAEC Financial Accounting 2009 Question 3

Question 3

Partnership Accounts

In the absence of an agreement, partners share profits

  1. A.based on activeness of a partner
  2. B.based on capital contribution
  3. C.on partronage basis
  4. D.on equal basis
Show the answer and explanation

Answer: D (on equal basis)

Explanation

Where there is no partnership agreement, the Partnership Act rule applies: profits and losses are shared equally.