🏫 Board📒 Accountancy

In the absence of partnership deed, partner

Q1 FREE PREVIEW

In the absence of partnership deed, partner

a

shall be paid salaries

b

shall not be paid salaries

c

active partner shall be paid salaries

d

none of these

✓ Correct answer: b)

shall not be paid salaries

Explanation

Correct option: B – shall not be paid salaries

  • In the absence of a Partnership Deed, the provisions of the Indian Partnership Act, 1932 apply.

  • As per the Act, no partner is entitled to salary for taking part in the conduct of the business unless it is expressly agreed in the partnership deed.

  • Therefore, when there is no partnership deed, partners are not paid any salary.

Why other options are wrong?

Option A – shall be paid salaries

  • Salary to a partner is not automatic.

  • It is payable only if it is clearly mentioned in the partnership deed.

  • Hence, A is wrong.

Option C – active partner shall be paid salaries

  • Even an active (working) partner is not entitled to salary without an agreement.

  • So, C is also wrong.

Option D – none of these

  • Since Option B is correct, this option cannot be correct.

  • Therefore, D is wrong.

Hence, the correct answer is Option B – shall not be paid salaries.

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