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Home Questions NQG6PZZ2WH
Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

Match List I with List II in context of partnership firm.

LIST I
 LIST II
A) Rent paid to partner I)Appropriation of profit
B) Salary to partner II) 6% p.a.
C) Interest on partner's loan III) Charge against profit
D) Oral agreement IV) Valid

Choose the correct answer from the given below options.

Options:

A-II, B-IV, C-I, D-III

A-III, B-I, C-II, D-IV

A-III, B-IV, C-II, D-I

A-IV, B-III, C-I, D-II

Correct Answer:

A-III, B-I, C-II, D-IV

Explanation:

The correct answer is option 2- A-III, B-I, C-II, D-IV.

LIST I
 LIST II
A) Rent paid to partner III) Charge against profit
B) Salary to partner I) Appropriation of profit
C) Interest on partner's loan II) 6% p.a.
D) Oral agreement IV) Valid

* Rent paid to a partner is an expense for the firm that is why it is charged to the profit & loss account.

* Salary to a partner is an appropriation of partner that is why it is debited to the profit and loss appropriation account. It is provided only if the appropriation is less than the available profit.

* Interest on partner's loan is provided @ 6%p.a. in absence of any agreement.

* The oral agreement is equal valid as written agreement. It depends on the firm whether to have written agreement or oral agreement. It is better to have written agreement in order to avoid any disputes in future.

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