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Commission of Rs 7,000 and bonus of Rs 5,500 are payable to A. What total credit will appear in A's account?

Answer and explanation

Correct answer: Rs 12,500

Both the commission and the bonus are payable to partner A and therefore are credited to A's account. Total credit = Rs 7,000 (commission) + Rs 5,500 (bonus) = Rs 12,500. Options B and C list only one item each (only commission or only bonus) so they are incorrect; option D is an unrelated difference. Exam tip: Always add up all items specifically payable to the partner and confirm whether they are to be credited to the partner's current/capital account or charged to Profit & Loss Appropriation Account.

Related tags

CommissionBonusPartnership AccountsAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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