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If partner salary is credited to capital account and debited to Profit and Loss Appropriation Account under which method can it be correct?

Answer and explanation

Correct answer: Fluctuating capital method

Under fluctuating capital method partner adjustments like salary are recorded in capital account. Under fixed method it would go to current account.

Related tags

Partner SalaryFluctuating CapitalMethod IdentificationCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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