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The deed provides rent to a partner for using his machine in firm business. What is this payment treated as?

Answer and explanation

Correct answer: Firm expense or deed based payable amount

If the machine is the partners personal asset and firm uses it rent may be a firm expense. The deed clause decides treatment.

Related tags

Rent To PartnerFirm ExpenseDeedPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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