Question : Assertion (A): A partner's salary is deducted from the profit and loss account.
Reason (R): A partner's salary is a appropriation of profit.
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 but Reason (R) is true
Correct Answer: Assertion (A) is false but Reason (R) is true
Solution : The salary paid to the partner is an appropriation that is recorded on the credit side of the appropriation account rather than the debit side of the profit and loss account.
Hence the correct answer is option 4.
Question : Assertion (A): A partner's interest on capital is paid only from profits. Reason (R): Interest on capital is a profit appropriation that must be provided regardless of profit or loss.
Question : Assertion (A): Rent paid to a partner is transferred to the debit of the profit and loss account but not to the debit of the profit and loss appropriation account. Reason (R): Rent paid to a partner is a cost that is deducted from profits rather than being appropriated
Question : Assertion (A) : Profit and Loss Appropriation account shows the correct profit earned by the firm.
Reason (R) : The net Profit adjusted after takin into account the interest on capital, Interest on drawings, Salaries/ Commission Paid
Question : Assertion (A): A Profit and Loss Appropriation Account is prepared to show the distribution of profits among partners as per the provision of Partnership Deed. Reason (R): Only working partner(s) can inspect the books of accounts.
Question : Assertion (A): A profit and loss appropriation account is prepared to show how profits are distributed among partners in accordance with the Partnership Deed.
Reason (R): Only the working partner(s) have access to the books of accounts.
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