Which of the following items is not an appropriation of profit in a partnership firm? MCQ with Answer and Explanation

Which of the following items is not an appropriation of profit in a partnership firm?
A. Rent paid to a partner's premises
B. Salary to partners
C. Interest on partners' capital
D. Interest on partners' drawings
Answer: Option A
Solution (By JKSSB Mock Tests)
Rent paid to partner is a charge against profit (debited to P&L A/c), not an appropriation. Others are appropriations.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
Under GST, the 'Composition Scheme' is not available to a person who:
A. Makes inter-state supplies
B. All of the above
C. Is engaged in the supply of services
D. Is engaged in the manufacture of ice cream and pan masala

Correct Answer: Option B


Explanation:
The Composition Scheme is barred for suppliers of services (except restaurants), those making inter-state supplies, casual/non-resident taxable persons, and manufacturers of specified goods like ice cream, pan masala, and tobacco. Therefore, all options apply.

Question #2
S1: The Indian Financial System comprises both organized and unorganized sectors. S2: The organized sector includes moneylenders and indigenous bankers. Which statement(s) is/are correct?
A. Both S1 and S2
B. Neither S1 nor S2
C. S1 only
D. S2 only

Correct Answer: Option C


Explanation:
The Indian Financial System has both organized (banks, RBI, stock exchanges) and unorganized (moneylenders, indigenous bankers) sectors. S2 is incorrect because moneylenders belong to the unorganized sector.

Question #3
S1: In financial management, the 'Net Present Value' (NPV) method assumes that cash inflows are reinvested at the cost of capital. S2: The 'Internal Rate of Return' (IRR) method assumes that cash inflows are reinvested at the IRR itself. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. Both S1 and S2
C. S2 only
D. S1 only

Correct Answer: Option B


Explanation:
Both statements correctly identify the reinvestment rate assumptions of the two capital budgeting techniques. NPV assumes reinvestment at the cost of capital (discount rate), while IRR assumes reinvestment at the IRR.