Rent payable to a partner is a/an:
- ADebited to trading account.
- BCredited to profit and loss account.
- CDebited to profit and loss account.
- DDebited to profit and loss appropriation account.
Solution & Step-by-step Explanation
Rent payable to a partner is viewed as a charge against profits, not an appropriation of profits. This is because the property is leased in an independent business capacity. Therefore, it must be debited to the standard Profit and Loss Account before net income is transferred to the appropriation statement.