Question

Pick the odd one out:

1. Salary to a partner
2. Rent to a partner
3. Commission to a partner
4. Interest on partner’s capital

Answer 1

Rent to a partner

Explanation:

Salary, commission, and interest on capital are appropriations of profit (recorded in the Profit and Loss Appropriation A/c), whereas rent to a partner is a charge against profit (recorded in the Profit and Loss A/c).