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WAEC Financial Accounting 1998 Question 12

Question 12

Partnership Accounts

Partners' salary is shown in the

  1. A.Trading Account
  2. B.Profit and Loss Account
  3. C.Income and Expenditure
  4. D.Profit and Loss Appropriation Account
  5. E.Partners' Capital Account.
Show the answer and explanation

Answer: D (Profit and Loss Appropriation Account)

Explanation

A partner's salary is a share of profit, so it goes in the appropriation account.