Journal entry

A/c entries 370 views 2 replies

Rohit

student

85 Points Joined January 2010

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.

Replies (2)

Guest

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

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

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.