CBSE Class 12 Accountancy — Accounting for Partnership Firms: Fundamentals (Profit and Loss Appropriation Account, Commission to a Partner)

Shree and Hari were partners in a firm sharing profits and losses in the ratio of 2 : 3. Their fixed capitals were Rs. 4,00,000 and Rs. 3,00,000 respectively. The partnership deed provided that Hari is to be allowed a commission of 5% of net profit. The net profit of the firm for the year ended 31st March, 2025 was Rs. 1,00,000. Pass the following journal entries in the books of the firm : (i) For crediting Hari's commission to his current account. (ii) For transferring the commission to Profit and Loss Appropriation Account.