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Travelling allowance Rs 6000 is payable to a partner. What will happen in appropriation account and partner account?

Answer and explanation

Correct answer: Appropriation debit and partner credit

Allowance payable to partner is an appropriation of profit. Therefore appropriation account is debited and partner account is credited.

Related tags

AllowanceDouble EffectAdjustmentAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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