Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

X and Y are partners in a partnership firm without any agreement. X devotes more time than Y. X can get the following commission in addition to profit in the firm's profit :

Options:

6% of profit

5% of profit

10% of profit

None of the above

Correct Answer:

None of the above

Explanation:

The correct answer is option 4- None of the above.

If there is no agreement, then no partner will be allowed commission.

Commission to partners is treated as an appropriation of profit, not a charge against profit (unless otherwise stated in the partnership deed). If the partnership deed is silent, then no commission (i.e., 0%) is allowed to any partner.