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Question
Give the adjusting entry and the closing entry for recording commission allowed to a partner when the firm follows the fixed capital method.
Journal Entry
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Solution
| Date | Particulars | L.F. | Debit (₹) | credit (₹) |
| (i) | Adjusting Entry: | |||
| Partner’s Commission A/c ...Dr. | xxx | - | ||
| To Partner’s Current A/c | - | xxx | ||
| (Being commission allowed to the partner.) | ||||
| (ii) | Closing Entry: | |||
| Profit and Loss Appropriation A/c ...Dr. | xxx | - | ||
| To Partner’s Commission A/c | - | xxx | ||
| (Being Transfer of Commission.) |
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