Can partners receive salary or remunerat

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Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

Can partners receive salary or remuneration for their involvement in the firm's business?

Options:

Yes, all partners are entitled to a fixed salary

No, partners cannot receive any form of remuneration

Yes, but only if specified in the partnership deed

No, partners can only receive profits as their compensation

Correct Answer:

Yes, but only if specified in the partnership deed

Explanation:

If the partnership deed provides for the salary then it is allowed to partners otherwise not.