Question

Kanishk and Lalit are partners with fixed capitals of ₹ 5,00,000 and ₹ 10,00,000, respectively. The profit for the year ending 31st March 2025 was ₹ 3,30,000 before providing for any of the following adjustments: Kanishk is entitled to rent of ₹ 10,000 per month for using his property for business purposes. Lalit is entitled to a quarterly salary of ₹ 20,000. The manager is to be allowed a commission of 5% of net profit after charging his commission.

Based on the above information, you are required to answer the following question:

Salary payable to Lalit will be ______.

Options

• Credited to his capital account

• Credited to his current account

• Debited to profit and loss account

• Credited to profit and loss appropriation account

Answer 1

Salary payable to Lalit will be credited to his current account.