Question 25 Chapter No 16 – Class 11 Unimax

Question 25 Chapter No 16 – Class 11 Unimax

The profit earned by a firm before allowing the Manager’s commission is ₹ 99,000 and the manager is entitled to a commission of 10% on net profit after charging such commission. Give the journal entry and show how it will final accounts.                                                     

The solution of Question 25 Chapter No 16 – Class 11 Unimax

Journal

Date		Particulars		Debit			Credit
		Manager’s commission A/c	Dr.			9,000
		To Outstanding commission A/c					9,000
		(Being commission on due to the Manager)
		Profit & Loss A/c	Dr.			9,000
		To Manager’s commission A/c					9,000
		(Being manager’s commission charged)

Profit & Loss A/c For the year ended…………
Particulars		Amount		Particulars	Amount
To Manager’s commission		9,000
(99,000*10/100)

Balance Sheet
Liabilities	Amount		Assets		Amount
Outstanding commission		9,000