Question

A and B are partners in a partnership firm without any agreement. A devotes more time for the firm as compared to B. A will get the following commission in addition to profit in the firm’s profit:

Options

• 6% of profit

• 4% of profit

• 5% of profit

• None of the above

Answer 1

None of the above

Explanation:

In the absence of a partnership agreement, the provisions of the Indian Partnership Act, 1932, apply. According to the Act:

No partner is entitled to any salary, commission, or remuneration for participating in the business of the firm unless it is expressly provided in the partnership deed. Therefore, even if A devotes more time and effort than B, he will not get any commission; only his share of profit will be given.