Question

(1) what will be the effect of commission paid on accounting equation?
(1) cash will decrease
(2) Cash will increase
(3) capital will increase
(4) cash and capital will decrease

Answer 1

option 4 is correct answer..................... hamna paid kiya h hamara pass se gaya h

Answer 2

Answer:

Cash will increase with the effect of commission paid on the accounting equation

Explanation:

When the commission gets recorded in the account books, then it shows as a credit in the cash account. In the commission's expense account it will project a debit. The commission can also be co-related with the expense incurred for selling the goods.  

This is because it is connected with the selling transaction of goods and the services involved. It is an amount which the business pays to the salesperson for the transaction of goods.