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If both profit ratio and salary are given in the partnership deed, what should be checked first in the profit and loss appropriation account?

Answer and explanation

Correct answer: Salary and other appropriation terms

Salary and other appropriations are adjusted before sharing residual profit. So the deed terms should be read in order.

Related tags

Profit AppropriationPartner SalaryDeed TermsPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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