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easyMCQCUET Accountancy 2025 22 May Shift 12026Accountancy
1 mark

All adjustments in respect of partner's salary, partner's commission, interest on capital, interest on drawings, etc. are made through:

  1. A
    Profit and Loss Account
  2. B
    Profit and Loss Appropriation Account
  3. C
    Partners' Capital Accounts
  4. D
    Revaluation Account

Solution & Step-by-step Explanation

The special extension account built past the ordinary Profit and Loss net balance statement to capture internal adjustments regarding distribution of corporate profits among partners (like salary, commissions, interest on capital/drawings) is the Profit and Loss Appropriation Account.

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All adjustments in respect of partner's salary, partner's commission, interest on capital, interest on drawings, etc. are made through:
A
Profit and Loss Account
B
Profit and Loss Appropriation Account
C
Partners' Capital Accounts
D
Revaluation Account

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