Question

Mukesh and Navdeep are partners sharing profits in 2 : 1 with fixed capitals of ₹ 6,00,000 and ₹ 4,00,000, respectively. As per their partnership deed: Navdeep is entitled to a rent of ₹ 48,000 per year for using his property by the firm. They are entitled to interest on capital @ 8% p.a. The manager is allowed a commission of 10% on net profit before charging such commission. Profit for the year ending 31st March, 2025, before any of the above adjustments, amounted to ₹ 1,25,000.

Answer the following question on the basis of the above:

Rent payable to Navdeep will be ______.

Options

• Debited to profit and loss adjustment account

• Credited to Navdeep’s capital account

• Debited to profit and loss account

• Debited to profit and loss appropriation account

Answer 1

Rent payable to Navdeep will be debited to profit and loss account.