Question

What to do with manager salary in profit and loss appropriation a/c

Answer 1

All the salaries are not involved in profit and loss appropriation a/c.Only partner's salary is written on debit side of profit and loss appropriation a/c.This is because partner's salary is charge on profit . It is payable only out of profits.But salary of managers,workers etc is charge against profit . It is payable irrespective of the fact whether there is profit or loss . Thus it is written on debit side of profit and loss a/c.

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