Aditya and Anand were partners in a firm sharing profits and losses in the ratio of $\displaystyle 4$ : 1. The partnership deed provided that Anand is to be allowed a commission of $\displaystyle 10$% on net profit. The net profit of the firm for the year ended 31st March, $\displaystyle 2025$ was ₹ $\displaystyle 2,00$,000. Pass necessary journal entries for allowing commission to Anand and transfer of the same to Profit and Loss Appropriation Account.

Books of Aditya and Anand Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) $\displaystyle 2025$ Mar.31 Anand’s Commission A/c/Partner’s Commission A/c Dr. $\displaystyle 20,000$ To Anand’s Capital A/c $\displaystyle 20,000$ (Anand’s commission credited to his capital account) ” Profit and Loss Appropriation A/c Dr. $\displaystyle 20,000$ To Anand’s Commission A/c/Partner’s Commission A/c $\displaystyle 20,000$ (Anand’s commission transferred to Profit and Loss Appropriation Account)