CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Analysing Statement of Profit and Loss

Commission to...

Question

Commission to manager is __________ to Profit and loss Account.

A

Debited

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

B

Credited

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Added

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Deducted

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is D Debited
Manager's commission is an operating expense just as any other expense like salary, rent etc. Manager's commission paid is shown on the debit side of the profit and loss account as it is an expense for the company.

Suggest Corrections

thumbs-up

0

Similar questions

Q. A and B are partners sharing profits in the ratio of 2 : 1. They decided to admit C, their manager, as a partner from 1st April, 2017, giving him 1/5th share of profit. C, while a manager, was getting a salary of Rs. 50,000 p.a. plus a commission of 10% of the net profit after charging such salary and commission. It also agreed that any excess amount which C receives as a partner (over his salary and commission), be borne by A. Profit for the year ended 31st March, 2018 amounted to Rs. 6,44,000, before payment of salary and commission. Prepare Profit and Loss Appropriation Account.

Q. If the manager is entitled to a commission of

5 %

on profits before deducting this commission, he will get a commission of Rs. __________ on a profit of Rs. 8400.

Q. A and B are in partnership sharing profits and losses in the ratio of 3 : 2. They admit C, their Manager, as a partner with effect from 1st April, 2018, for 1/4th share of profits.
C, while a Manager, was in receipt of a salary of ₹ 27,000 p.a. and a commission of 10% of the net profits after charging such salary and commission.
In terms of the Partnership Deed, any excess amount, which C will be entitled to receive as a partner over the amount which would have been due to him if he continued to be the manager, would have to be personally borne by A out of his share of profit. Profit for the year ended 31st March, 2019 amounted to ₹ 2,25,000. You are required to show Profit and Loss Appropriation Account for the year ended 31at March, 2019.

Q. A and B are in partnership sharing profits and losses in the ratio of 3 : 2. They decided to admit C, their Manager, as a partner with effect from 1st April, 2017, giving him 1/4th share of profits.
C, while a Manager, was in receipt of a salary of ₹ 27,000 p.a. and a commission of 10% of the net profits after charging such salary and commission.
In terms of the Partnership Deed, and excess amount, which C will be entitled to receive as a partner over the amount which would have been due to him if he continued to be the manager, would have to be personally borne by A out of his share of profit. Profit for the year ended 31st March, 2018 amounted to ₹ 2,25,000. You are required to show Profit and Loss Appropriation Account for the year ended 31at March, 2018.

Q. The manager is entitled to a commission of 5% of net profit after changing such commission.

Profits before charging some commission is Rs. 21,000, find the commission ____________.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Statement of Profit and Loss

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Analysing Statement of Profit and Loss

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon