Question

Which of the following is true regarding Salary to a partner when

the firm maintains fluctuating capital accounts?​

Answer 1

Answer:

.what is the meaningof fluctuating

Answer 2

Answer:

The question given is incomplete without the options, and as I could find, following are the options:

1. Debit Partner’s Loan A/c and Credit P & L Appropriation A/c.
2. Debit P & L A/c and Credit Partner’s Capital A/c.
3. Debit P & L Appropriation A/c and Credit Partner’s Current A/c.
4. Debit P & L Appropriation A/c and Credit Partner’s Capital A/c.

The correct answer is Option 4, i.e., Debit P & L Appropriation A/c and Credit Partner’s Capital A/c.

Explanation:

Debit Profit and Loss appropriation account is the appropriate account created to deal with the profit and loss of a partner from the firm. Talking of the salary, is a profit to the partner and thus is dealt with the said account.

It is considered as the extension to the profit and loss accounts among partners.

This account is responsible for the ledger of profit amount among the partners of the firm, transferred to the partner which maintains the fluctuating capital account as the debtor, that is, credit partner's capital account.