1)partner' capital a/c dr
to interest on drawings
2)salary payable a/c dr
to salarya/c
3)interest on drawings a/c dr
to p & l approriation
why the debit -credit logic is not applying for them,
one of my friend ,asked me and icouldn't explain to him.
i'm thinking that debit-credit logic doesn't apply to closing,adjusting and due entries,am i right
Kartikeya Verma
(CA PCC STUDENT)
(91 Points)
Replied 24 September 2009
cz dey apply to the other A/c wich is being simultaneously debited or credited.
Kanchan
(Chartered Accountant)
(34 Points)
Replied 28 September 2009
1)partner' capital a/c dr DEBIT THE RECEIVER A/C
to interest on drawings CREDIT THE INCOME OF FIRM
2)salary payable a/c dr LIABILITY GOES OUT WITH A CREDIT
to salarya/c REDUCTION IN EXPENDITURE
3)interest on drawings a/c dr INCOME OF THE FIRM -CR BAL TRS TO P/L TO CLOSE THE A/C
to p & l approriation ALL INCOMES SHALL BE TRSD TO P/L -TRS ENTRY
DEBIT -CREDIT RULES ARE APPLYING . IF ANY OTHER QUERY JUST ASK ME... I HOPE U GOT THE SATISFACTORY ANSWER
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