The salary of a partner is usually debited to the?

Assessment: JAMB UTME - Principles of Accounts - 2010 Subject: Financial Accounting

Question 1 Report

The salary of a partner is usually debited to the?
Answer Details
The salary of a partner is usually debited to the appropriation account. The appropriation account is a ledger account used to record the allocation of profits or losses in a partnership. The account is credited with the net profit or debited with the net loss for the accounting period, and it is also used to record other items that affect the distribution of profits to partners, such as salaries, interest on capital, and drawings. Since the salary of a partner is an expense of the partnership, it is debited to the appropriation account to reduce the amount of profit available for distribution to the partners.
Read lesson note on Partnership Accounts (WAEC)
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