Pawan, manager of the firm, is admitted as partner w.e.f 1st April 2022 to manage the business. The salary paid to him during the year ended 31st March 2023 will be
Pawan, manager of the firm, is admitted as partner w.e.f 1st April 2022 to manage the business. The salary paid to him during the year ended 31st March 2023 will be
a) transferred to the debit of Pawan’s Capital Account
b) transferred to the debit of Pawan’s Current Account
c) transferred to the debit of the Profit and Loss Account
d) transferred to the debit of the Profit and Loss Appropriation Account.
Anurag Pathak Changed status to publish April 9, 2023
Ans – d)
The salary paid to the partner is an appropriation. Thus it is debited to Profit and Loss Appropriation Account.
Anurag Pathak Changed status to publish April 4, 2023
