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Journal entry

Rohit (student) (85 Points)

02 June 2017

what is the journal entry for partners remuneration payable to partners? please tell me the ledger under which head i opened the accounts? current liabilites or indirect expenses.

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Remuneration to partner A/c [ledger group: indirect expense]

To Partner's Capital or Current A/c [ledger group: capital]

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Shishir (Big4 audit) (34 Points)
Replied 04 June 2017

Very simple. Partners Remuneration ac dr. To Remuneration Payable Ac Then, P&L ac Dr. To Partners Remuneration Ac Once, you make payment, Remuneration payable Ac dr. To Bank ac Classify Remuneration expense to indirect expense and make sure to classify payable under current liabilities.