CBSE Class 12-commerce Answered

I believe you are asking for the treatment of Manager's Salary or commission payable at a rate after charging such salary or commission. Here, we will guide you that this salary or commission that is treated as a charge against profits of the firm and is to be paid before any interest or salary is paid to a partner. Accordingly, it is shown on the debit side of the Profit and Loss Account.

The accounting treatment for the same in case such commission/salary is to be paid on profit after charging such commission/salary, we will calculate it using the below mentioned formula.