Accountancy Part AAccounting for Partnership

All adjustments in respect of partner's salary, partner's commission,…

All adjustments in respect of partner's salary, partner's commission, interest on capital, interest on drawings, etc. are made through:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Profit and Loss Appropriation Account

NCERT (2026-27 edition):
Profit and Loss Appropriation Account – “Profit and Loss Appropriation Account is merely an extension of the Profit and Loss Account of the firm. It shows how the profits are appropriated or distributed among the partners. All adjustments in respect of partner’s salary, partner’s commission, interest on capital, interest on drawings, etc. are made through this account.”