Rent payable to partner is.... |
Debited to trading account Credited to profit and loss account Debited to profit and loss account Debited to profit and loss appropriation account |
Debited to profit and loss account |
The correct answer is option 3- Debited to profit and loss account. Rent payable to partner is debited to profit and loss account. The partnership firm is paying rent to partners. Rent paid to partners is a charge against profit. Debiting the Profit and Loss Account indicates an expense for the business which reduces the net profit of the firm. |