Commission received in advance A/c appearing in the trial balance is ___________.

shown on the liability side of balance sheet

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shown on the assets side of the balance sheet

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shown on debit side of profit and loss A/c

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credited to profit and loss A/c

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Solution

The correct option is B shown on the liability side of balance sheet
Commission received in advance is unearned income. Unearned income is defined as income not due but recieved. Till the time, it accrue, this will be shown as liability in the balance sheet.

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State whether the following statement are true or false.

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5. An amount of net profit is added to the capital.
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Commission received in advance A/c appearing in the trial balance is ___________.

The correct option is B shown on the liability side of balance sheetCommission received in advance is unearned income. Unearned income is defined as income not due but recieved. Till the time, it accrue, this will be shown as liability in the balance sheet.

The correct option is B shown on the liability side of balance sheet
Commission received in advance is unearned income. Unearned income is defined as income not due but recieved. Till the time, it accrue, this will be shown as liability in the balance sheet.