S1: In the absence of a partnership deed, a partner is entitled to a salary for participating in management. S2: In the absence of a partnership deed, interest on partner's loan is allowed at 6% p.a. Which statement(s) is/are correct? MCQ with Answer and Explanation

S1: In the absence of a partnership deed, a partner is entitled to a salary for participating in management. S2: In the absence of a partnership deed, interest on partner's loan is allowed at 6% p.a. Which statement(s) is/are correct?
A. Both S1 and S2
B. S2 only
C. S1 only
D. Neither S1 nor S2
Answer: Option B
Solution (By JKSSB Mock Tests)
The Partnership Act 1932 does not allow any partner to claim a salary for management participation if the deed is silent. However, it does allow interest on a partner's loan at 6% p.a. S1 is incorrect, S2 is correct.

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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is not a function of cost accounting?
A. Ascertaining cost
B. Cost control
C. Preparation of financial statements
D. Assisting in decision making

Correct Answer: Option C


Explanation:
Preparation of financial statements is the function of financial accounting, not cost accounting.

Question #2
S1: Under GST, the 'E-invoice' system generates an Invoice Reference Number (IRN) and a QR code. S2: The IRN is generated by the taxpayer's own accounting software without connecting to the government portal. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. Both S1 and S2
C. S1 only
D. S2 only

Correct Answer: Option C


Explanation:
S1 is correct; e-invoicing generates an IRN and QR code. S2 is incorrect because the IRN is generated by the Invoice Registration Portal (IRP) of the government, not locally by the taxpayer's software without validation.

Question #3
Which of the following is typically maintained using the imprest system?
A. Main Cash Book
B. Petty Cash Book
C. Sales Ledger
D. Purchase Day Book

Correct Answer: Option B


Explanation:
The Petty Cash Book uses the imprest system where a fixed float is maintained and actual expenses are reimbursed periodically.