Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

Rent payable to partner is....

Options:

Debited to trading account

Credited to profit and loss account

Debited to profit and loss account

Debited to profit and loss appropriation account

Correct Answer:

Debited to profit and loss account

Explanation:

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.