Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

Which account preparation is not guided by Partnership Deed?

Options:

Profit & Loss account

Profit & Loss Appropriation account

Both of these

None of these

Correct Answer:

Profit & Loss account

Explanation:

Profit and Loss Account is not prepared on the basis of Partnership Deed, except for interest on loan from partners whereas Profit and Loss Appropriation Account is prepared on the basis of the Partnership Deed.