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If salary of five thousand rupees and commission of three thousand rupees are payable to A what total credit will be made to A account?

Answer and explanation

Correct answer: Eight thousand rupees

The direct answer is Option A: Rs 8,000. Salary and commission are two separate amounts payable to A. To find the total credit, add them: Rs 5,000 + Rs 3,000 = Rs 8,000. A’s capital or current account is credited because these amounts increase what the firm owes A. Option A is correct. Option B, Rs 2,000, is the difference, not the total. Option C, Rs 5,000, includes only salary and leaves out commission. Option D, Rs 3,000, includes only commission and leaves out salary. The word ‘total’ is the important exam clue: add all amounts payable to the partner.

Related tags

SalaryCommissionPartner Account

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