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The deed provides equal annual salary to partners but one partner remained for only six months. How will his salary be calculated?

Answer and explanation

Correct answer: In proportion to six months

If service period is shorter salary is calculated on time basis unless the deed states otherwise. This is important in admission and retirement problems.

Related tags

Partner SalaryTime ProportionDeedPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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