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Question
Which of the following items is not dealt through Profit and Loss Appropriation Account?
Options
Interest on partner's loan
Partner's salary
Interest on partner's drawings
Partner's commission
MCQ
Solution
Interest on partner's loan
Explanation:
The interest on the loan to a partner is promptly reflected in the Profit and Loss Account. The Profit and Loss Appropriation Account handles the partner's compensation, interest on partner's withdrawals, and commission.
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Distribution of Profit Among Partners
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