In the absence of a partnership deed, what is the rule regarding salaries to partners? MCQ with Answer and Explanation

In the absence of a partnership deed, what is the rule regarding salaries to partners?
A. Salary proportional to capital
B. Salary based on hours worked
C. No partner is entitled to a salary
D. Equal salary to all partners
Answer: Option C
Solution (By JKSSB Mock Tests)
Section 13(a) of the Indian Partnership Act, 1932 states that partners are not entitled to receive any remuneration for participating in the business.

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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is NOT a limitation of financial accounting?
A. Ignores price level changes
B. Ignores qualitative aspects
C. Subject to estimation and judgment
D. Provides data for tax assessment

Correct Answer: Option D


Explanation:
Providing data for tax assessment is a utility of financial accounting, not a limitation. The others are recognized limitations.

Question #2
The 'Section 115BAC' relates to:
A. Minimum Alternate Tax
B. Tax on dividends
C. New tax regime for individuals and HUFs
D. Alternate Minimum Tax

Correct Answer: Option C


Explanation:
Section 115BAC provides the concessional tax regime for individuals/HUFs.

Question #3
The 'Professional Skepticism' means:
A. Believing management without question
B. Questioning mind and critical assessment of audit evidence
C. Ignoring evidence
D. Being cynical always

Correct Answer: Option B


Explanation:
Auditor must apply professional skepticism throughout the engagement.