In a partnership where the division of profits and losses is based on salaries, interest, and a stated ratio, if the salary and interest allocation will exceed the profit, the profit is allocated only by the stated ratio instead.

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Quizplus · Accepted Answer

In such a partnership, if the salary and interest allocation exceeds the profit, the loss is typically allocated according to the agreed terms, which may include the stated ratio, but not exclusively by it.

In a Partnership Where the Division of Profits and Losses