Question

A Manager is entitled to get a commission of 10% on Net Profit before charging such commission
Net Profit before charging such commission is Rs. 1,10,000.
Find out the commission payable to the manager and also identify its Accounting treatment in Financial Statements.
Rs. 11,000 Profit & Loss A/c Dr Side and Balance sheet Asset Side,
0 Rs. 10,000, Profit & Loss A/c Cr Side and Balance sheet Liability Side
0 Rs. 11,000 Profit & Loss A/c Dr Side and Balance sheet Liability Side.
0 Rs. 10,000, Profit & Loss A/c Dr Side and Balance sheet Liability Side

Answer 1

Explanation:

11,000 Profit & Loss A/c Dr Side and Balance sheet Liability Side.