{"id":56025,"date":"2024-04-16T00:37:27","date_gmt":"2024-04-16T00:37:27","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=56025"},"modified":"2024-04-16T00:37:27","modified_gmt":"2024-04-16T00:37:27","slug":"a-and-b-are-partners-in-a-firm-they-are-entitled-to-interest-on-their-capitals-but-the-net-profit-was-not-sufficient-for-interest-in-this-case-the-net-profit-will-be-distributed-among-partners-in","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/a-and-b-are-partners-in-a-firm-they-are-entitled-to-interest-on-their-capitals-but-the-net-profit-was-not-sufficient-for-interest-in-this-case-the-net-profit-will-be-distributed-among-partners-in\/","title":{"rendered":"A and B are partners in a firm. They are entitled to interest on their capitals, but the net profit was not sufficient for interest. In this case, the net profit will be distributed among partners in"},"content":{"rendered":"

[amp_mcq option1=”Agreed ratio” option2=”Profit-sharing ratio” option3=”Capital ratio” option4=”Equally” correct=”option1″]<\/p>\n

The correct answer is: A. Agreed ratio<\/strong><\/p>\n

The agreed ratio is the ratio in which the partners have agreed to share the profits of the business. This ratio is usually specified in the partnership agreement. If the net profit is not sufficient for interest, the partners will still share the profits in the agreed ratio.<\/p>\n

The profit-sharing ratio is the ratio in which the partners agree to share the profits of the business after interest has been paid. This ratio is usually specified in the partnership agreement. If the net profit is not sufficient for interest, the partners will share the profits in the profit-sharing ratio.<\/p>\n

The capital ratio is the ratio of the partners’ capital contributions to the business. This ratio is not usually used to determine how the partners share the profits of the business. However, if the partners have not agreed on a different ratio, the profits will be shared in the capital ratio.<\/p>\n

Equally is not a correct answer because the partners have agreed on a different ratio in which to share the profits.<\/p>\n","protected":false},"excerpt":{"rendered":"

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