If the deed gives different salary rates to partners how will they be distributed in the Profit and Loss Appropriation Account?

Correct answer: Based on rates and periods given in the deed

Direct answer: Option A is correct. Partner salary is an appropriation of profit and is recorded according to the partnership deed. If different partners have different salary rates, calculate each salary using that partner’s own rate and the relevant period. For example, if one partner receives Rs 10,000 per month for 12 months, the amount is Rs 1,20,000; another partner’s amount may differ because the rate or period differs. Option A works because the deed is the controlling basis. Option B is wrong because different stated rates do not become equal merely for convenience. Option C is wrong because capital ratio is not the basis unless the deed expressly says so. Option D is wrong because drawings show withdrawals and do not determine salary. The accounting idea is that salary is not an automatic business expense here; it is a distribution or appropriation made under agreed terms. First read the rate, then the period, and calculate partner by partner. Memory cue: salary follows the deed, not equality, capital, or drawings.