Practicing Success
Practicing Success
CUET Preparation Today
| A partnership firm debit salary and commission of partners to the profit and loss appropriation account. Partners argues that it should be debited to profit and loss account. Who is right in this situation? |
Partners Firm Both None |
| Firm |
| Profit and Loss Appropriation Account is merely an extension of the Profit and Loss Account of the firm. It shows how the profits are appropriated or distributed among the partners. All adjustments in respect of partner’s salary, partner’s commission, interest on capital, interest on drawings, etc. are made through this account. |
