what is the treatment for manager's commission while mking profit and loss appropriation account we have to put it - Accountancy - Accounting for Partnership Basic Concepts

Question

what is the treatment for manager's commission while mking
profit and loss appropriation account? we have to put it in profit
and loss appropriation ac or profit and loss ac? please explain for
both the cases- before charging such commission and after charging
such commission

Sachin Dhankhar · Accepted Answer

we treat it in profit and loss a/c on dr side
it is calculated by two methods:-
1 ) On profit before charging such commission :-
FOR Eg :- if the before charging managers commission is 30000 and
manager allowed a commission of 10% on that profit , then the
profit wil be:-
( amt x rate/100) 30000 x 10/100 = 3000
On profit after charging after charging such commission
:- FOR Eg :- if the before charging managers commission is
30000 and manager allowed a commission of 10% on the profit
AFTER CHARGING SUCH COMMISSION , then the commission will be
calculated as:- (amt x rate/100+rate)
30000 x 10/100+10

what is the treatment for manager's commission while mking profit and loss appropriation account? we have to put it in profit and loss appropriation ac or profit and loss ac? please explain for both the cases- before charging such commission and after charging such commission.