HomeTestsSearchRankProfile
easyMCQCUET Accountancy 2025 2 June Shift 22026CUET Accountancy
1 mark

Rent payable to a partner is a/an:

  1. A
    Debited to trading account.
  2. B
    Credited to profit and loss account.
  3. C
    Debited to profit and loss account.
  4. D
    Debited 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.

Practice this question

Try it yourself before checking the explanation above.

Rent payable to a partner is a/an:
A
Debited to trading account.
B
Credited to profit and loss account.
C
Debited to profit and loss account.
D
Debited to profit and loss appropriation account.

Share This Question

Related Questions

Ready for a Full Test?

Practice with timed mock tests and track your performance across CUET Accountancy.

Discussion