Question : Partner's salary is debited to:
Option 1: Trading Account
Option 2: Profit and Loss Account
Option 3: Profit & Loss Appropriation Account
Option 4: None of these
Correct Answer: Profit & Loss Appropriation Account
Solution : Partner's salary is debited to the Profit and Loss Appropriation Account because it is an appropriation of profits. Hence, the correct option is 3.
Question : Kumar, Verma and Naresh were partners in a firm sharing profit & loss in the ratio of 3: 2: 2. On 23rd January 2015 Verma died. Verma's share of profit till the date of his death was calculated at Rs.2,350.
Question : Which of the following items is not dealt with through a Profit and Loss Appropriation Account?
Question : When a partner pays unrecorded liability is --------------------debited and concerned ------------------------is credited.
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