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The partnership deed allows A a monthly salary of rupees two thousand. At year end, where will this amount first be recorded?

Answer and explanation

Correct answer: Profit and Loss Appropriation Account

Partner salary is recorded in the Profit and Loss Appropriation Account. Treat it separately from salary to employees.

Related tags

Partner SalaryAppropriation AccountDeed ClausePartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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