Assertion: : Rent payable to a partner is transferred to the credit of Partner’s Capital Account and not to Rent Payable Account.
Reasoning: Rent payable to a partner for letting the firm use his personal property for business is a transaction that is not related to him being a partner. Therefore, it is credited to Rent Payable Account.
Reasoning: Rent payable to a partner for letting the firm use his personal property for business is a transaction that is not related to him being a partner. Therefore, it is credited to Rent Payable Account.
Answer & explanation
Correct answer: option 4
Rent payable to partner is the external liability of the firm not the appropriation. Thus it is credited to rent payable account. only appropriations are transferred to partners capital account. Thus assertion is false. and reason is true