Question

Which of the following items is not dealt through Profit and Loss Appropriation Account?

विकल्प

• Interest on partner’s loan 

• Partner’s salary 

• Interest on partner’s drawings

• Partner’s commission

• Interest on Partner’s Capital

Answer 1

Interest on partner’s loan 

Explanation:

The interest on the loan to a partner is promptly reflected in the Profit and Loss Account. The Profit and Loss Appropriation Account handles the partner’s compensation, interest on the partner’s withdrawals, and commission.