Question

Janani, Kamali and Lakshmi are partners in a firm sharing profits and losses equally. As per the terms of the partnership deed, Kamali is allowed a monthly salary of ₹ 10,000 and Lakshmi is allowed a commission of ₹ 40,000 per annum for their contribution to the business of the firm. You are required to pass the necessary journal entry. Assume that their capitals are fluctuating.

Answer 1

S. No.	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Kamali's Salary A/c  ...Dr.		10,000	-
	To Kamali's Capital A/c		-	10,000
	(Kamali's salary transferred to his capital A/c)
2.	Lakshmi's commission A/c  ...Dr.		40,000	-
	To Lakshmi's capital A/c		-	40,000
	(Lakshmi's commission transferred to his capital A/c)
3.	Profit and Loss Appropriation A/c  ...Dr.		50,000	-
	To Kamali's salary A/c		-	10,000
	To Lakshmi's commission A/c		-	40,000
	(Salary and Commission account Transferred)