Home › CA Foundation › accounting › Final Accounts of Sole Proprietors › Accrued commission earned is:
Accrued commission earned is:
ALiability on Balance Sheet
BDirect trading expense
CReduction from capital
DAsset on Balance Sheet
Answer & Solution
Correct answer: D. Asset on Balance Sheet
1. Accrued income is income earned but not yet received.
2. It is a current asset at year end.
3. Added to P&L credit as part of the period's income.
_Source: ICAI BoS Foundation Paper 1, Ch 7 U1 "Final Accounts", §1.2 ¶5_
Related questions
Goods worth ₹8,000 destroyed by fire; ₹6,000 recovered from insurance. The loss debited toTrial balance: capital ₹2,00,000; drawings ₹15,000; net profit for year ₹35,000. Closing cBills receivable shown as ₹20,000 in trial balance; ₹5,000 discounted but not yet matured Interest on capital is treated as:Goods costing ₹10,000 used by proprietor personally:Closing stock includes goods sent on consignment ₹15,000 (sold not yet). They should be:Manager's commission is 10% of net profit after such commission. Net profit before commissDrawings of ₹15,000 by proprietor are: