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For whom can commission be written in a partnership deed?

Answer and explanation

Correct answer: For a partner doing special work

A partnership deed may authorize commission or other remuneration for a partner who performs special duties, brings exceptional skill, manages a major function, or contributes additional effort to the firm. The deed should identify the eligible partner or the basis of calculation, such as a fixed amount or a percentage, so the payment can be determined and recorded properly. Option A is correct because the commission rewards a partner’s agreed service to the partnership. Customers, supplier companies, and bank employees are outside the normal internal remuneration arrangement described by this clause, so options B, C, and D are unsuitable.

Related tags

Partner CommissionRemunerationPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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