Question : Pick the odd one out of the following:
Option 1: Rent to partners
Option 2: Manager's commission
Option 3: Interest on partner's loan
Option 4: Interest on partner's capital
Correct Answer: Interest on partner's capital
Solution : Answer = interest on partner's capital Rent to partners, manager's commission, and interest on the partner's loan are transferred to the profit and loss account. Interest on the partner's capital is charged from the appropriation of profit transferred to the profit and loss appropriation account. Hence, the correct option is 4.
Question : Which of the following items is not dealt with through a Profit and Loss Appropriation Account?
Option 1: Interest on partner's loan
Option 2: Partner's salary
Option 3: Interest on partner's capital
Option 4: Partners commission
Question : Which one of the following items will not come in the Profit and Loss Appropriation Account?
Option 1: Interest on partners capital
Option 2: Salary to partner
Option 3: Commission to partner
Option 4: Interest on loan to a partner
Question : Which one of the following items cannot be recorded in the profit and loss appropriation account?
Option 1: Interest on capital
Option 2: Interest on drawing
Option 3: Rent paid to partner
Option 4: Partner's salary
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