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 : |
6% of profit 5% of profit 10% of profit None of the above |
None of the above |
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. |