If the deed provides five percent commission on profit to a partner, when will it be allowed?

Correct answer: When the deed condition is fulfilled

Direct answer: Option A, when the deed’s condition is fulfilled. A commission to a partner is not an automatic payment simply because the person is a partner. The deed must state the basis, rate and relevant condition. First identify whether the commission is calculated on profit before or after charging commission; then calculate profit on that stated basis; finally record the partner’s commission as an appropriation of profit. Option A is correct because payment depends on compliance with the agreed deed term. Option B is wrong because commission is not automatically equal to capital; capital and commission are different matters. Option C is wrong because a profit commission is not normally allowed only when there is a loss. Option D is wrong because the deed may validly provide it, so it is not ‘never’ payable. If the deed is unclear, the exact calculation may require clarification, but the general principle remains agreement-based. Exam cue: for commission, read the base and the before/after condition carefully.