Question

Commission is paid for purchase of a land. It will be ___________.

• A. disclosed in trial balance
• B. not disclosed in trial balance
• C. will be disclosed in profit and loss account
• D. will be disclosed in balance sheet

Answer 1

The correct option is B not disclosed in trial balance

All incidental expenses pertaining to the purchase of any asset should be debited to the respective asset account.

Commission paid for purchase of land to be added to the cost of land. Hence this amount will not disclosed in the trial balance. It should be part of land value.