Question

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

Which one of the following items cannot be recorded in the profit and loss appropriation account?

पर्याय

• Interest on Capital

• Interest on Drawings

• Rent paid to partners

• Partner’s salary

Answer 1

Rent paid to partners

Explanation:

Rent paid to a partner is reported on the debit side of the profit and loss account and deducted from the profit.