Advertisements
Advertisements
Question
What adjusting entries would you record for the following:
Manager’s commission
Journal Entry
Solution
There are two cases in manager’s commission.
Case 1: Manager’s commission based on profits before charging the manager’s commission.
| Dr. | Profit and Loss Account | Cr. | |
| Particulars | Amount | Particulars | Amount |
| Manager’s commission |
|||
| Balance sheet | |||
| Liabilities | Amount | Assets | Amount |
| Outstanding Manager’s | |||
| Commission | |||
Case 2: Manager’s commission based on profits after charging the manager’s commission.
| Dr. | Profit and Loss Account | Cr. | |
| Particulars | Amount | Particulars | Amount |
| Net Profit before Manager's Commission |
|||
| O/S Manager's Commission |
|||
| Net Profit after Manager's Commission |
|||
| Balance sheet | |||
| Liabilities | Amount | Assets | Amount |
| Outstanding Manager’s | |||
| Commission | |||
shaalaa.com
Manager's Commission
Is there an error in this question or solution?
