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The deed allows a monthly salary of eight thousand rupees to a partner. He became a partner on 1 January and the year ends on 31 March. What salary will be allowed?

Answer and explanation

Correct answer: Twenty-four thousand rupees

The governing concept is time-based allocation of a recurring monthly remuneration under the partnership deed. The partner is entitled from 1 January through 31 March, which covers January, February and March, or three complete months. The calculation is: monthly salary ₹8,000 × 3 months = ₹24,000. Therefore option A is correct. ₹96,000 represents twelve months and ignores the date of admission. ₹8,000 represents only one month, while ₹32,000 incorrectly treats the period as four months. The year-end date is included because remuneration is earned for the three months ending on 31 March.

Related tags

Partner SalaryTime ProportionPartnership DeedNumericalPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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