7. Salary to a partner is shown in: (a) Dr. side of Profit and Loss Appropriation A/c (1) Cr. side of Profit and Loss Appropriation Ale Dr. side of Profit and Loss Ale (d) Cr. side of Profit and Loss Alc.
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- Option (a)
•° Salary to a partner is shown in debit side of profit and loss appropriation A/c because it's a nominal A/c in which all expenses and losses are debited and incomes and gains are credited.
•° Profit and loss appropriation A/c is not a charge against profit i.e if the firm earns profit then it'll give salary to partners otherwise not.
•° Salary to partners, interest on capital, general reserve, etc are the appropriation of profit.
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