Dakshayini posted an Question
September 12, 2020 • 18:41 pm 30 points
  • UGC NET
  • Commerce

Salary paid to partner should be shown where and which account

salary paid to partner should be shown where and which account

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  • Rucha rajesh shingvekar best-answer

    The salaries or commission to partners is a appropriation of profit rather than charge. so it is debited to profit and loss appropriation account and shall be credited to respective partners' capital accounts if capitals are fluctuating and to be credited to partners current account if capitals are fixed in nature. Salary/Commission ...........................Dr. To Partners' capital/current A/c Profit and loss appropriation A/C.......................Dr. To Salary/Commission

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