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The deed clearly says that after interest on capital and salary, remaining profit will be shared. Which account is related to this?

Answer and explanation

Correct answer: Profit and Loss Appropriation Account

Partner related profit appropriations are shown in this account. Salary and interest on capital are common items in it.

Related tags

Appropriation AccountSalaryInterest On CapitalPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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