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A is to receive annual salary of (₹18000) but he was partner for only (9) months. If the deed says salary is time based what is A's salary?

Answer and explanation

Correct answer: (₹13500)

The direct answer is B, ₹13500. The deed says that the salary is time based, so A receives only the proportion of the annual salary corresponding to the nine months of partnership. One year has 12 months. The monthly equivalent is ₹18000/12=₹1500. For 9 months, salary is ₹1500\times9=₹13500, or directly ₹18000\times\frac{9}{12}=₹13500. Therefore option B is correct. Option A, ₹18000, would give the full annual salary even though A was a partner for only nine months, ignoring the time condition. Option C, ₹9000, corresponds to only six months and is too low. Option D, nil, is wrong because the deed clearly grants salary and A served for nine months. The calculation assumes the stated annual salary is spread evenly through the year and that no other adjustment is mentioned. Exam cue: when a salary is explicitly time based, multiply annual salary by months served divided by 12.

Related tags

PartnershipAdjustmentsTime Based Salary

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