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M is employed by P Q R Bros. a Partnership Firm. M is entitled to a remuneration of Rs. 40,000 p.m. plus 12% on the profit of the firm if profits exceed Rs. 10 lacs. Hence:
- a)M is not deemed as a partner in the firm
- b)M is deemed as partner in the firm
- c)M’s appointment is invalid
- d)M can claim only Rs. 40,000 p.m. but not share of profits
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
M is employed by P Q R Bros. a Partnership Firm. M is entitled to a re...
Explanation:
Partnership Firm Structure:
- In a partnership firm, partners share profits and losses as per the terms of the partnership agreement.
M's Remuneration:
- M is entitled to a fixed remuneration of Rs. 40,000 per month.
- Additionally, M is entitled to 12% of the firm's profit if it exceeds Rs. 10 lakhs.
Non-Partner Status:
- M's entitlement to a fixed remuneration and a share of profits based on a specific condition does not make M a partner in the firm.
- M's role is more of an employee receiving a salary and a performance-based incentive rather than being a partner who shares in the management and decision-making of the firm.
Conclusion:
- Therefore, M is not deemed as a partner in the firm despite being entitled to a share of profits based on the firm's performance.
Partnership Firm Structure:
- In a partnership firm, partners share profits and losses as per the terms of the partnership agreement.
M's Remuneration:
- M is entitled to a fixed remuneration of Rs. 40,000 per month.
- Additionally, M is entitled to 12% of the firm's profit if it exceeds Rs. 10 lakhs.
Non-Partner Status:
- M's entitlement to a fixed remuneration and a share of profits based on a specific condition does not make M a partner in the firm.
- M's role is more of an employee receiving a salary and a performance-based incentive rather than being a partner who shares in the management and decision-making of the firm.
Conclusion:
- Therefore, M is not deemed as a partner in the firm despite being entitled to a share of profits based on the firm's performance.
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M is employed by P Q R Bros. a Partnership Firm. M is entitled to a re...
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M is employed by P Q R Bros. a Partnership Firm. M is entitled to a remuneration of Rs. 40,000 p.m. plus 12% on the profit of the firm if profits exceed Rs. 10 lacs. Hence:a)M is not deemed as a partner in the firmb)M is deemed as partner in the firmc)M’s appointment is invalidd)M can claim only Rs. 40,000 p.m. but not share of profitsCorrect answer is option 'A'. Can you explain this answer?
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M is employed by P Q R Bros. a Partnership Firm. M is entitled to a remuneration of Rs. 40,000 p.m. plus 12% on the profit of the firm if profits exceed Rs. 10 lacs. Hence:a)M is not deemed as a partner in the firmb)M is deemed as partner in the firmc)M’s appointment is invalidd)M can claim only Rs. 40,000 p.m. but not share of profitsCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about M is employed by P Q R Bros. a Partnership Firm. M is entitled to a remuneration of Rs. 40,000 p.m. plus 12% on the profit of the firm if profits exceed Rs. 10 lacs. Hence:a)M is not deemed as a partner in the firmb)M is deemed as partner in the firmc)M’s appointment is invalidd)M can claim only Rs. 40,000 p.m. but not share of profitsCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M is employed by P Q R Bros. a Partnership Firm. M is entitled to a remuneration of Rs. 40,000 p.m. plus 12% on the profit of the firm if profits exceed Rs. 10 lacs. Hence:a)M is not deemed as a partner in the firmb)M is deemed as partner in the firmc)M’s appointment is invalidd)M can claim only Rs. 40,000 p.m. but not share of profitsCorrect answer is option 'A'. Can you explain this answer?.
M is employed by P Q R Bros. a Partnership Firm. M is entitled to a remuneration of Rs. 40,000 p.m. plus 12% on the profit of the firm if profits exceed Rs. 10 lacs. Hence:a)M is not deemed as a partner in the firmb)M is deemed as partner in the firmc)M’s appointment is invalidd)M can claim only Rs. 40,000 p.m. but not share of profitsCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about M is employed by P Q R Bros. a Partnership Firm. M is entitled to a remuneration of Rs. 40,000 p.m. plus 12% on the profit of the firm if profits exceed Rs. 10 lacs. Hence:a)M is not deemed as a partner in the firmb)M is deemed as partner in the firmc)M’s appointment is invalidd)M can claim only Rs. 40,000 p.m. but not share of profitsCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M is employed by P Q R Bros. a Partnership Firm. M is entitled to a remuneration of Rs. 40,000 p.m. plus 12% on the profit of the firm if profits exceed Rs. 10 lacs. Hence:a)M is not deemed as a partner in the firmb)M is deemed as partner in the firmc)M’s appointment is invalidd)M can claim only Rs. 40,000 p.m. but not share of profitsCorrect answer is option 'A'. Can you explain this answer?.
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ample number of questions to practice M is employed by P Q R Bros. a Partnership Firm. M is entitled to a remuneration of Rs. 40,000 p.m. plus 12% on the profit of the firm if profits exceed Rs. 10 lacs. Hence:a)M is not deemed as a partner in the firmb)M is deemed as partner in the firmc)M’s appointment is invalidd)M can claim only Rs. 40,000 p.m. but not share of profitsCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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