Which of the following is transferred to the Profit and Loss Appropriation Account?
Which of the following is transferred to the Profit and Loss Appropriation Account?
a) Salary/Commission to a partner
b) Salary/Commission to a manager
c) Interest on Capital of a partner
d) Both a) and C)
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Ans – d)
The following are transferred to the Profit and Loss Appropriation Account
At debit side
1. Interest on partner’s capital
2. Partner’s Salary
3. Partner’s Commission
At Credit side
1. Interest on Drawing
2. net Profit.
Note:- Salary and commission to manager is charged against profit. Thus debited to the Profit and Loss Account.
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