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If a partner is given commission on sales how is it treated in partnership profit appropriation?

Answer and explanation

Correct answer: It is sales related expense and goes to profit and loss account

Commission on sales is not based on profit so it may be an expense. Commission on profit is treated as appropriation.

Related tags

PartnershipAdjustmentsCommission On SalesPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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