Question

What would be the journal entry for crediting the partner's salary to the partner's capital account?

Options

• Salary to Partner A/c Dr To Partner's Capital/ Current A/c's.

• Salary to Partner A/c Dr To Profit and Loss Appropriation A/c.

• Salary to Partner A/c Dr To Profit and Loss A/c.

• None of these

Answer 1

Salary to Partner A/c Dr To Partner's Capital/ Current A/c's.

Explanation:

For crediting partner's salary to partner's capital account: Salary to Partner A/c Dr. To Partner's Capital/ Current A/c's (2) For transferring partner's salary to Profit and Loss Appropriation Account: Profit and Loss Appropriation A/c Dr. To Salary to Partner's A/c.