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Where does the second effect of partners residual profit share go from Profit and Loss Appropriation Account?

Answer and explanation

Correct answer: To partners capital or current accounts

Profit share is payable to partners. Hence it is credited to their capital or current accounts.

Related tags

Residual ProfitCapital AccountCurrent AccountProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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