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प्रश्न
Is rent paid to a partner appropriation of profits?
पर्याय
It is appropriation of profit.
It is not appropriation of profit.
If partner’s contribution as capital is maximum.
If partner is a working partner.
MCQ
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उत्तर
It is not appropriation of profit.
Explanation:
Rent paid to a partner is treated as a charge against profit because it is paid for the use of property, not for ownership rights in the firm. Hence, it is debited to the Profit and Loss Account, not to the Profit and Loss Appropriation Account. Therefore, it is not appropriation of profit.
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