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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question 24 Chapter No 16 – Class 11 Unimax
The profit earned during the year 2019-2020 by the firm before allowing the Manager’s commission is ₹ 80,000 and the manager is entitled to a commission of 10% on Net profit before charging his commission. Give the journal entry and show how it will appear in final accounts.
Journal
| Date | Particulars |
Debit | Credit | ||||
|---|---|---|---|---|---|---|---|
| 31.3.2020 | Manager’s commission A/c | Dr. | 8,000 | ||||
| To Outstanding commission A/c | 8,000 | ||||||
| (Being commission on due to the Manager) | |||||||
| 31.3.2020 | Profit & Loss A/c | Dr. | 8,000 | ||||
| To Manager’s commission A/c | 8,000 | ||||||
| (Being manager’s commission charged) | |||||||
| Profit & Loss A/c |
||||
| Particulars |
Amount | Particulars | Amount | |
|---|---|---|---|---|
| To Manager’s commission | 8,000 | |||
| (80,000 x10/100) | ||||
Balance Sheet As on 31st March, 2020
| Liabilities | Amount | Assets | Amount | ||
|---|---|---|---|---|---|
| Outstanding commission | 8,000 | ||||
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 24 Chapter No 16 – Class 11 Unimax", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 16 - Financial Statements (With Adjustments) - Unimax.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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