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Interest on Capital and Drawings at the Time of Death

What is the a...

Question

What is the assumption regarding commision and salary paid to partners ? Charge or apporpriarion

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Solution

Dear Student,

Salary & Commission to partners would be paid only when it is agreed upon & after all expenses are paid off.

Since they would be paid after all charges are paid to partners, they are appropriations of profit & would be debited to profit & loss appropriation A/c and credited to partners capital/current A/c as the case may be.

Regards,

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