Question

$A$ and $B$ are partners in a firm without a Partnership Deed. $A$ is an active partner and claims a salary of $Rs.18,000$ per month. State with reason whether the claim is valid or not.

Answer 1

If there is no partnership deed or no provision in the partnership deed,then some provisions cannot be carried out. One of them is salary to the partners.

Partners are not entitled to claim salary for the work done if there is no partnership deed to that effect.

So,A although being an active partner cannot claim a salary of Rs18,000 per month.