The profits should be divided equally among the partners. In most cases, the partners specify how much of the profits they will each receive in their partnership agreement. For instance, it might be decided that the profit-sharing ratio in a firm with three partners will be 2/4 1/4: 1/4. In the absence of such an agreement, the partners are required by Section 13(b) to equally share earnings and losses incurred by the business, rather than proportional to the capital contributions made by each partner. Any partner who claims that their shares are not equal must provide evidence of a written agreement to that effect.
No extra compensation is typically to be offered to a partner for managing the firm’s business because every partner is entitled to a share of the earnings. A partner is not allowed to earn compensation for participating in the operation of the firm, unless other arrangements are made, according to the regulation in Section 13(a). If you want to be a judicial officer and are looking for RJS coaching in Jaipur, here, at Jyoti Judiciary we provide comprehensive study material to make your preparation solidified and topnotch. From preliminary mock tests, to mains answer writing sessions every material required for clearing the exam is provided. We have separate legal current affairs classes, legal general knowledge, current affairs classes all in one time enrolment. Hurry up.
