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The deed allows salary to partner A and commission to partner B. What is the correct treatment before profit distribution?

Answer and explanation

Correct answer: Adjust both in Profit and Loss Appropriation Account

Partner salary and commission are appropriations of profit. They are shown in the Profit and Loss Appropriation Account before distributing remaining profit.

Related tags

SalaryCommissionAppropriationPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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