Is rent debited to general profit and loss account?

All the office and administrative expenses like office salaries, printing and stationery expenses, legal expenses, telephone and electricity charges, office rent, audit fees, insurance premium etc. are debited in profit and loss account.

Is rent paid to partner appropriation of profit?

Rent paid is an expense for business not as distribution of profit to partners. Rent paid to a partner is charged to profit not appropriation of profit.

Is rent paid to a partner shown in partners Capital Account?

See, rent paid to partner is considered as charge against profit and recorded in profit and loss account as expense. It is not considered as appropriation thus not recorded in profit and loss appropriation account. The rent is paid to partner against the personal property of the partner used by the firm.

Why is salary or commission paid to a partner debited to profit and loss appropriation account?

Why is salary or commission paid to a partner debited to profit and loss appropriation account?? Because salary,commission etc are just a form of distributing profits among the partners.In whatever form it may be(salary,commission etc) the profits are to be distributed amongst the partners.

What is rent in profit and loss account?

Profit and loss account represents income and expenditure of the entity. As rent is an expenditure the same is debited to profit and loss account.

Where would you record rent paid to partner while preparing profit and loss appropriation?

Answer: 1) Since rent paid to partner is a charge rather than appropriation, it will be deducted from Net profit which appears on credit side of P/l app. account.

Is rent paid to a partner appropriation of profit Mcq?

Is rent a charge on profit?

It is appropriation of profit.

What is the nature of rent paid to a partner?

Rent paid is an expense for business not as distribution of profit to partners. It is charged to profit and loss account not from profit and loss appropriation account. Rent paid to a partner is charged to profit not appropriation of profit.

Which account is debited when any partner is paid salary?

profit & loss appropriation account
Salary paid to partner should be debited to profit & loss appropriation account.

Where does rent come in profit and loss account?

Unpaid rent will be added to rent paid account and will be shown in liabilities side of balance sheet. In case of rent paid as direct expenses, will be shown in expenses side of trading account and rent paid as indirect expenses, will be shown in expenses side of profit and loss account.

What is rent paid to partner?

Rent paid to a partner is a charge against the profit. It means it will reduce the profit. That’s why it is shown in Profit and Loss Account instead of Profit and Loss Appropriation Account.