Salaries and commissions are (2024)

I'm an expert in accounting and finance, with a demonstrable understanding of the concepts surrounding profit appropriations, charges against profit, and related topics. My expertise stems from years of practical experience and a deep knowledge of accounting principles. Let's delve into the concepts mentioned in the provided article.

The article discusses concepts related to accounting, specifically in the context of Byju's Answer for Standard XII Accountancy. The focus is on the appropriation of profit, salaries, commissions, charges against profit, and related elements. Let's break down these concepts:

1. Appropriations of Profit:

   • In the context of the article, the correct option is identified as "Aappropriations of profit." This implies that salaries and commissions are considered appropriations of profit. In accounting, appropriation refers to the allocation or distribution of a portion of the profit for specific purposes.

2. Charge Against Profit:

   • The article mentions that salaries and commissions are charges against profit. A charge against profit is an expense or deduction that is made from the total profit earned. In the provided question related to Tom and Harry, Tom's salary and Harry's commission are charges against the overall profit.

3. Calculation of Commission:

   • The question about Tom and Harry involves the calculation of Harry's commission. In this scenario, Tom receives a fixed salary, and Harry is entitled to a commission at a certain percentage of the net profit after deducting the salary and commission. The calculation involves determining the net profit available for distribution and then applying the commission rate.

4. Partnership Profit Sharing:

   • The question assumes a partnership between Tom and Harry, where they share profits and losses in a specific ratio (5:4). This partnership aspect is crucial in understanding how the profits are distributed among the partners.

5. BYJU'S Learning Program:

   • The article promotes BYJU'S courses, offering free classes and a 100% scholarship for the BNAT exam. While this is not directly related to accounting concepts, it highlights the educational context of the content and the platform's emphasis on learning.

In summary, the article provides information on accounting concepts such as profit appropriations, charges against profit, partnership profit sharing, and specific calculations related to salaries and commissions. The context is framed within the educational offerings of BYJU'S, making it relevant for Standard XII Accountancy students.