Partnership

Accounting

Easy

common

Choose the correct option for transferring partner's salary to Profit and Loss Appropriation A/c

Profit & Loss Appropriation account is debited and the salary to partners account is credited.

Salary to Partner's account is debited and Profit & Loss Appropriation account is credited.

Partner's capital account is debited and the Profit & Loss Appropriation account is credited.

Profit & Loss Appropriation account is debited and the Profit & Loss account is credited.

✅ Correct Option: 1

Partner's salary is an appropriation of profit, so it is charged against the appropriation account. The entry is Profit and Loss Appropriation A/c Dr., To Salary to Partners A/c, which is then closed by transfer to the partners' capital or current accounts.

2025: 2 June Shift 2

When the date of drawing is not specified, interest on drawings are calculated for

2025: 14 May Shift 1

Contents of the Partnership Deed does not include

2022: 20 Aug Shift 2

From the following information, calculate interest on Capital of C, a partner for the year ended 31st March, 2022.

C's Capital on 31/3/2022: Rs. 12,00,000

Profit credited to C for the year ended 31/3/2022: Rs. 3,00,000

Drawings made during the year: Rs. 1,00,000

Additional Capital introduced on 1/10/21: Rs. 5,00,000

Rate of Interest = 12 % p.a.

2026: 29 May Shift 2

Varun, Vansh and Vinay are partners sharing profits in the ratio of 5:3:2. They decided to share future profits in the ratio of 2:3:5. What will be the accounting treatment of Workmen Compensation Reserve existing in the balance sheet on that date when further information is not available.

2022: 15 July Shift 2

Calculate manager's commission at 10% on Net profit, if the Divisible profit of a firm is Rs. 10,000, salary to partners is Rs. 3000 and Interest on drawings is Rs. 2000.

2026: 6 June Shift 1

Select the appropriate ratio for the following events. Match List-I with List-II

List-I (Events)	List-II (Ratio)
(A) General Reserve	(I) Gaining Ratio
(B) Retirement of a partner	(II) Old Profit Sharing Ratio
(C) Admission of a partner	(III) New Profit Sharing Ratio
(D) Adjustment of Capitals at the time of Admission	(IV) Sacrificing Ratio

Choose the correct answer from the options given below:

Choose the correct option for transferring partner's salary to Profit and Loss Appropriation A/c

Solution

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