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In case of insufficient profits ( i.e., profits less than interest on capital) then the profits are distributed in: ?

a) Profit sharing ratio

b) Capital ratio

c) Not distributed

d) Sacrificing ratio

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Question added by Shamseer KM , Accounts and Admin Payroll , KBM Group
Date Posted: 2015/07/27
Shamseer KM
by Shamseer KM , Accounts and Admin Payroll , KBM Group

Capital Ratio....................

The profit will be distributed in capital ratio

Michael Lagunday
by Michael Lagunday , Accounts Assistant , Invest Group Overseas LLC

The deficiency is divided among the partners based on their capital ratio.

Muhammad Sabith
by Muhammad Sabith , Accountant , SIMORA

a) Profit sharing ratio ..................

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