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. Equal salary to all partners
B. No partner is entitled to a salary
C. Salary proportional to capital
D. Salary based on hours worked
Answer: Option B
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 feature of a company?
A. Common seal
B. Perpetual succession
C. Unlimited liability
D. Separate legal entity

Correct Answer: Option C


Explanation:
Company has limited liability, not unlimited.

Question #2
The 'Return on Equity' (ROE) is computed as:
A. Net profit / Shareholders' equity
B. Gross profit / Equity
C. EBIT / Equity
D. Net profit / Total assets

Correct Answer: Option A


Explanation:
ROE measures return to equity shareholders.

Question #3
A factory produces 10,000 units. Variable cost per unit is ₹50; fixed cost ₹2,00,000. The selling price per unit to achieve break-even at 8,000 units is:
A. ₹75
B. ₹90
C. ₹80
D. ₹70

Correct Answer: Option A


Explanation:
BEP units = Fixed cost / (Selling price - Variable cost). 8,000 = 2,00,000 / (SP - 50) => SP - 50 = 2,00,000/8,000 = 25 => SP = ₹75.