If the deed provides both salary and commission but net profit is low, what should be checked first?

Correct answer: Order and limit of payment in the deed

The governing concept is that partners’ remuneration must be accounted for according to the exact terms of the partnership deed. If both salary and commission are mentioned and profit is low, the first step is to examine whether the deed specifies the order of payment, the basis of commission, a maximum limit, or a condition such as availability of adequate profit. For example, commission may be calculated before or after a particular charge, and salary may be payable before commission. These contractual instructions determine the correct treatment and any deficiency. A bank branch, customer list, or quantity of goods does not decide the partners’ entitlement. Hence option A is correct.