Question:
Rent paid to a partner is _________ against profit. (charge/appropriation)
Rent paid to a partner is _________ against profit. (charge/appropriation)
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In partnership accounting, appropriations are distributions of profit that happen before the final division among partners.
Updated On: Jan 5, 2026
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Solution and Explanation
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.
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.
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