Read the following passage and answer the questions given below.
Ram and Shyam are partners sharing profits in the ratio of 3:2. Their capitals as on 31st March 2022 were ₹500000 and ₹300000 respectively. There is no partnership deed but both partners agreed for the interest on capital @ 5% p.a. and salary to Shyam of ₹25000 annually. On preparing accounts it was found that Interest on capital is omitted and manager's commission was not given which is 5% of the net profit before charging such commission. Profits after Shyam salary was ₹249300.

Where will the manager's commission be charged?

Debit side of Profit and loss A/c

The correct answer is option 1- Debit side of Profit and loss A/c.

The manager's commission is charged against the firm which means the firm has to give this whether it earns a profit or not. So, it is written down in the debit side of profit and loss A/c.