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The deed states that A will use personal vehicle for firm work and get Rs 8000 monthly allowance. Where will this allowance be shown?

Answer and explanation

Correct answer: In Profit and Loss Appropriation Account or expense as per deed

Allowance to a partner may usually be appropriation but deed wording is decisive. In exams identify its nature from wording.

Related tags

Partner AllowanceDeed WordingAccounting TreatmentPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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