Pick the odd one out of the following on the basis of the charge against profit or appropriation of profit. |
Interest on partner’s Capital Manager’s Commission Rent to Partner Interest on Partner’s Loan |
Interest on partner’s Capital |
The correct answer is option 1- Interest on partner’s Capital. Besides of interest on partners' capital, all others are charge against profit and debited to profit and loss account. Interest on partners' capital is an appropriation of profit and transferred to profit & loss appropriation account. |