Match List I with List II
| List I | List II |
| A. Partner's Salary | I. P & L A/c Dr. |
| B. Manager's Salary | II. P & L Appropriation Ac Dr. |
| C. Distribution of Loss | III. P & L A/c Cr. |
| D. Commission Received | IV. P & L Appropriation A/c Cr. |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A-II, B-I, C-IV, D-III
The Profit and Loss Account works out the firm’s profit after all charges against it. The Profit and Loss Appropriation Account then shows how that profit is divided among the partners.
A. Partner’s Salary — this matches II. P & L Appropriation Ac Dr. A partner’s salary is an appropriation of profit, debited to the appropriation account.
B. Manager’s Salary — this matches I. P & L A/c Dr. A manager is an employee, so his salary is an expense charged in arriving at the profit.
C. Distribution of Loss — this matches IV. P & L Appropriation A/c Cr. When there is a loss, the partners’ capital or current accounts are debited and the appropriation account is credited to close it.
D. Commission Received — this matches III. P & L A/c Cr. Commission earned by the firm is an income, credited to the Profit and Loss Account.
NCERT (2026-27 edition):
|
