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The firm paid A's household rent of ₹24000 and recorded it as rent expense. What will be the effect on A's account in the correct adjustment?

Answer and explanation

Correct answer: A's account will be debited ₹24000

Household rent is a personal expense of the partner. When paid by the firm it is treated as drawings and A's account is debited.

Related tags

PartnershipDrawingsPersonal ExpenseAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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