Question

multiple choice questions
rent given to partner is what :-(1) is a charge on profit (2)is a share of profit (3) is an appropriation of profit (4) all of the above
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Answer 1

Rent is paid for the use of asset of partner in business. Rent paid is an expense for business not as distribution of profit to partners. It is charged to profit and loss account not from profit and loss appropriation account. Rent paid to a partner is charged to profit not appropriation of profit.