The deed states that partner salary is payable irrespective of profit or loss. What will be its accounting nature?

Correct answer: Charge against profit

The governing concept is the distinction between a charge against profit and an appropriation of profit. A payment described as payable irrespective of profit or loss is treated as an expense or charge that must be considered before the residual profit is distributed. It reduces the profit available for appropriation and may still be recognised even when the firm has a loss, subject to the exact terms of the deed and applicable rules. Therefore option A is correct. A normal appropriation is made only after profit has been determined; drawings are withdrawals of funds, and goodwill adjustment concerns business reputation rather than remuneration.