Accounting entery
This query is : Resolved
20 April 2013
sir,
i want to know in partnership for hospital if 3 doctors take remuneration monthly 500000 monthly . is that is expenses for the firm, and what will be for partner- is income ? or transfer to capital account directly
i want to know in partnership for hospital if 3 doctors take remuneration monthly 500000 monthly . is that is expenses for the firm, and what will be for partner- is income ? or transfer to capital account directly
21 April 2013
Dear Swapna
As far as accounting goes, the remuneration due to partners as per the Partnership Deed is what can be charged to the P&L as expense. The entry would be to debit the Partner's Remuneration Account (Expense Head) and credit Partner's Capital or Current Account (Balance Sheet Liabilities Head). When actual drawing happens, the debit goes to the Partner's Drawing Account (Balance Sheet Liabilities Head as deduction from Capital or Current Account) and the credit to Bank Account.
As far as accounting goes, the remuneration due to partners as per the Partnership Deed is what can be charged to the P&L as expense. The entry would be to debit the Partner's Remuneration Account (Expense Head) and credit Partner's Capital or Current Account (Balance Sheet Liabilities Head). When actual drawing happens, the debit goes to the Partner's Drawing Account (Balance Sheet Liabilities Head as deduction from Capital or Current Account) and the credit to Bank Account.
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