alleryStart learning →What defines a guaranteed payment to a partner?
APaid only from profit
BTied to net income
CSet regardless of income
DPaid to retirees only
Answer & Solution
Correct answer: C. Set regardless of income
Guaranteed payments are fixed without regard to the partnership's income, as with salary and interest allowances.
Keep practising Partnership Accounts
Browse all Partnership Accounts questions for CA Foundation, or explore more Accounting topics.
Related questions
In an LLP, is a partner liable for another partner's unauthorised actions?An LLP partner's liability is limited to what?Which authority registers and controls LLPs in India?What minimum capital is needed to form an LLP?What is the minimum number of members needed to start an LLP?What is the upper limit on partners in an Indian LLP?What does perpetual succession mean for an LLP?Which Act is stated not to apply to Indian LLPs?