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If bonus payable to partner is Rs 8000 what will happen in appropriation account and partner account respectively?

Answer and explanation

Correct answer: Appropriation debit and partner credit

Partner bonus is an appropriation of profit. Therefore appropriation account is debited and partner account is credited.

Related tags

Partner BonusDouble EffectAdjustmentAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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