Question : Assertion (A): The firm's partners are Amit, Bharat, and Charu. The Partnership Agreement provides that Amit will be paid a salary of 60,000 per year. Bharat and Charu have also requested salaries of 60,000 each. Salaries for Bharat and Charu will be permitted. Reason (R): In the absence of a Partnership Deed, the Partnership Act of 1932 applies. As a result, Bharat and Charu will not be paid.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true but Reason (R) is False
Option 4: Assertion (A) is false and Reason (R) is true
Correct Answer: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Solution : In the absence of any agreement regarding salary in partnership deed. The provisions of the Indian Partnership Act 1932 are applied. Thus no salary would be provided to partners.
Hence the correct answer is option 1.
Question : Assertion (A): The partnership deed may be either written or oral. Reason (R): In order to avoid all misunderstandings and disputes, it is always the best course to have a written agreement duly signed and registered under the Act.
Question : Assertion (A): The partnership agreement can be written or oral. Reason (R): To avoid any misunderstandings or disputes, it is always best to have a written agreement that has been signed and registered under the Act.
Question : Assertion (A): If the partnership deed does not address the payment of interest, the interest on loans to partners is charged at a rate of 6% per year. Reason (R): In the absence of Partnership Deed, provisions of the Partnership Act, 1932 apply. Therefore, 6%
Question : Assertion: The National Food for Work Program was started in 2004 with the aim of giving rural communities more chances for self-employment. Reason: In 2005, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) included this scheme.
Question : Assertion: The Employee State Insurance (ESI) Act provides social security and health insurance benefits to workers. Reason: ESI is applicable to establishments with ten or more employees
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile