Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 18 - No. 40)
If a partner's salary is a fixed amount per year, how is this treated in the financial statements?
As an expense in the income statement.
As an expense in the appropriation account.
Shown in the balance sheet.
Shown as drawings of the partner.
Explanation
Partner's salaries is an expense and shown in the appropriation account.
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