Give the adjusting entry and the closing entry for recording commission allowed to a partner, when the firm follows the fixed capital method. (I.S.C. 2015)


(i) Adjusting Entry:

Partner’s Commission A/c        Dr.                  
   To Partner’s Current A/c

(Commission allowed to the partner)

(ii) Closing Entry:

Profit and Loss Appropriation A/c       Dr.

    To Partner’s Commission A/c

(Transfer of Commission)

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