The deed says partners must not take personal expenses from the firm. Still A paid personal rent from firm money. How will it be treated?

Correct answer: A's drawings

The governing concept is the distinction between a business expense and a partner's private withdrawal. Rent for the partner's personal residence or other personal obligation does not help earn the firm's revenue and cannot be charged to the firm's Profit and Loss Account merely because the firm made the payment. Since the firm's cash was used for A's personal benefit, the amount is debited to A's drawings or current account, depending on the accounting system used. Thus option A is correct. It is not firm rent expense, because the benefit is personal; it is not goodwill or interest, because neither represents the nature of the payment.