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Charge against Profits

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Question

The partnership deed provides for a salary of Rs.7000 per month to partner A. If A withdraws only Rs. 5000 in a month, the remaining Rs. 2000 is __________________________.

A

Credited to profit and loss (adjustment) account

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B

Credited to the current account of partner A

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C

Credited to salary payable account

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D

Debited to his capital account

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Solution

The correct option is A Credited to the current account of partner A
In this case, partner A withdraws Rs5000 out of Rs7000 per month of his salary. So, the remaining salary of Rs2000 will be credited to the Current Account of partner A.

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