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If the partnership deed is silent, can a partner be allowed a salary?

Answer and explanation

Correct answer: No

Under the governing rule for partnership accounts, a partner is not entitled to remuneration merely because he or she works for the firm. Salary or commission to a partner is allowed only when the partnership deed contains an express provision or the partners subsequently agree to it. If the deed is silent, no salary can be credited as a matter of right; therefore option A is correct. A fixed rate such as 6% has no basis here, so option B is incorrect. Equal payment is also not automatic, and the amount of capital does not create a salary entitlement. Thus options C and D confuse remuneration with profit-sharing or capital contribution.

Related tags

PartnershipAdjustmentsPartner SalaryPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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