How to account for salary to partners in partnership firm?

1

What procedure should be followed to give salary to partners in a partnership firm ?
Even if the partner does not withdraws his salary it should get added to the capital account of the respective partner every month.
How to withdraw salary from bank after issuing payslip to employee ?
Is it ok to add a sub account ( Salary to partners in Capital Account ) ?
How to add sub account under capital accounts ( Like drawings / share of profit / contributions ) ?

2

The way to do this would be to create partners as employees and issue them payslips as usual.

If partner doesn’t get paid their salary, you can make a journal entry to debit their Employee clearing account and credit their Capital account.

3

Bank - Spend Money with allocation to Employee Clearing.

4

My preferred method would be as follows:

  1. Create a Capital sub-account under Settings for the partners salary.
  2. Create an Expense account for the partners salary.
  3. Create a periodic Journal Entry for the partners salary by debiting the Expense account and crediting the Capital sub-account.
  4. When the partners salary is paid, allocate the payment to the Drawings sub-account.
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