Question

1. Classify the following accounts under Modern approach and traditional approach. a) Motor vehicles. b) Salaries, c) Commission received. d) Trademarks, c) Due to Samecra.​

Answer 1

Answer:

1st thing traditional approach is not followed under accounting..

. As per modern approach

Motor vehicles is asset dr. Bal..

Salaries is expenses dr. Bal..

Commission received is income cr. Bal..

Trademarks is asset bcz it is a goodwill dr. Bal..

Due to samecra is liability so cr.. Bal...

Answer 2

Explanation:

The accounting cycle is a fundamental process for completing a company’s bookkeeping tasks. Following steps should be taken to complete the accounting cycle;

Identify transactions

Record transactions in a journal

Posting of every transaction

Unadjusted trial balance

Balance worksheet

Adjusting journal entries

The classification of given entities under modern and traditional approach of accounting principles are;

Motors vehicles and trademarks are classified into assets, while salaries and samecra are taken an expenses. Commission received is considered as an income to the company or the employee itself