In what way would you deal with rent paid to a partner for the use of his premises by the firm in which he is a partner and why?
In what way would you deal with rent paid to a partner for the use of his premises by the firm in which he is a partner and why?
Anurag Pathak Changed status to publish April 9, 2023
Answer:-
Rent paid to a partner for the use of his premises is a charge against profit and thus, is treated as an expense of the firm to be debited to the Profit and Loss Account and credited to his capital account (in case of fluctuating capital) or his current account (in case of fixed capital).
Anurag Pathak Changed status to publish April 9, 2023
