Salary or Commission to a partner is an - Vidyadip

MCQ

Salary or Commission to a partner is an

A
appropriation cum charge
B
charge against profits
C
asset
D
appropriation out of profits.

✓

Answer

(d) appropriation out of profits
Explanation:
In a normal situation, salary or commission paid to a partner is treated as an appropriation. It means salary or commission is paid only when there is profit and amount of salary or commission cannot be more than the profits. So we can say that in the case of profit, commission or salary to a partner can be provided.

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