Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:
Where will be the manager's commission shown by a partnership firm?
Options:
Profit and Loss account
Profit and Loss appropriation account
Balance Sheet
Partner's Capital account
Correct Answer:
Profit and Loss account
Explanation:
Manager's commission is not related to partner. So, it is expenditure of firm and shown in P& L account.