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The deed says partner salary is payable irrespective of profit or loss. Profit before salary is twelve thousand rupees and salary is thirty five thousand rupees. What will be the result after salary?

Answer and explanation

Correct answer: Loss of twenty three thousand rupees

The special clause makes salary a charge. Deducting salary thirty five thousand from profit twelve thousand creates loss of twenty three thousand.

Related tags

Salary As ChargeLossProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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