Question

Rent paid to a partner is _________ against profit. (charge/appropriation)

Hint:

In partnership accounting, appropriations are distributions of profit that happen before the final division among partners.

Answer 1

Step 1: Understanding the question.
Rent paid to a partner is an appropriation against the profit, meaning it is deducted from the profit before it is distributed among the partners.
Step 2: Conclusion.
The correct answer is appropriation, as rent is considered an appropriation, not a charge.