Question

Read the following text and answer the given question:

Chandrika and Tara are in partnership with Capitals of ₹ 30,00,000 and ₹ 20,00,000 respectively. Business is being carried from the property owned by Tara on a monthly rent of ₹ 10,000. Chandrika is entitled to a salary of ₹ 15,000 per quarter and Tara a salary of ₹ 5,000 per month.  Manager is entitled to a commission of 10% of profit before charging such commission. Net Profit for the year ended 31st March 2024 before any of the above adjustments was ₹ 10,00,000.

Salary payable to partners is ______.

Options

• Appropriation of Profit

• Charge against Profit

• Debited to Profit and Loss Account

• Debited to Profit and Loss Appropriation Account

Answer 1

Salary payable to partners is appropriation of Profit and debited to Profit & Loss Appropriation Account.