Identify the true statement in respect of a partnership Firm-

Rent paid to partner and Interest on loan from the partner, both are charges for the firm.

The correct answer is Option (2) → Rent paid to partner and Interest on loan from the partner, both are charges for the firm. 

In partnership accounting, it's crucial to distinguish between a 'Charge against Profit' and an 'Appropriation of Profit':

1. Charge against Profit: These expenses are mandatory and must be paid whether the firm makes a profit or incurs a loss. They are debited to the Profit and Loss Account.

   • Rent paid to a partner is considered a payment to the partner acting as a landlord, not a partner. It is a mandatory business expense.

   • Interest on a loan from a partner is treated like interest on a loan from any third party (a creditor). It is a mandatory expense under Section 13(d) of the Indian Partnership Act, 1932.

2. Appropriation of Profit: These are distributions of profit made only if a profit is earned. They are debited to the Profit and Loss Appropriation Account. Examples include Interest on Capital, Partner's Salary, and Commission (unless specifically treated as a charge).

Since both Rent paid to a partner and Interest on loan from the partner are mandatory payments regardless of profit, they are both considered charges for the firm.