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If the deed clearly says partner salary is an appropriation of profit, what is its normal treatment in a loss year?

Answer and explanation

Correct answer: Not payable

Appropriation of profit is made only when profit is available. In loss, such salary is generally not allowed.

Related tags

Partner SalaryAppropriationLossPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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