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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Post Office RD Interest
- Reporting Income under Section 44ADA
- Itr 1 processing
- Building and other construction workers welfare cess act 1996
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- Bank Accounts in Balance Sheet for ITR 3
- Annual return of gst limit
- TDS ON CASH WITHDRAWALS...
- Article ship defecit
- Eway bill for machinery reparing
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
