Question

salary or commission to a partner is a charge against​

Answer 1

Answer: salary and commission is appropriation against profit

Explanation: because partners only entitled for salary or commission on that case where firm earned a profit but in the case of loss partners only share loss due to no any amount remaining from profit for distributing a income of partner.

Answer 2

They are charged against profit.

• It is a profit appropriation rather than a charge.
• Thus, it is debited to the profit and loss appropriation account and credited to respective partners' capital accounts.
• However, if capitals fluctuate and credited to partners' current accounts if capitals are fixed.
• They are recorded on the profit and loss account's debit side.
• Prior to dividing profits among partners, all charges against profit expenses, whether paid or not, must be recorded.

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