Sudhir and Rajeev were partners in a firm sharing profits and losses in the ratio of $\displaystyle 4$ : 3. Their partnership deed provided that Sudhir will be allowed a commission of $\displaystyle 7$% of the net profit. The net profit of the firm for the year ended 31st March, $\displaystyle 2025$ was ₹ $\displaystyle 1,00$,000. Pass necessary journal entries for allowing commission to Sudhir and transferring the same to Profit and Loss Appropriation Account.

Books of Sudhir and Rajeev Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) $\displaystyle 2025$ Sudhir’s Commission A/c/Partner’s Commission A/c Dr. $\displaystyle 7,000$ Mar.31 To Sudhir’s Capital A/c $\displaystyle 7,000$ (Sudhir’s commission credited to his current account) Profit and Loss Appropriation A/c Dr. $\displaystyle 7,000$ To Sudhir’s Commission A/c/Partner’s CommissionA/c $\displaystyle 7,000$ (Sudhir’s commission transferred to Profit and Loss Appropriation Account)