Question

46. When commission become
payable due to underwriter entry
passed:

Debit Cash/Bank, Credit
Underwriter

Credit Cash/Bank
A/debit Underwriter A/C

Debit Underwriter; Credit
Commission

Debit Underwriting
Commission A/c;Credit
Underwriter​

Answer 1

Answer:

To C's Account (5,00,000 x 10 x 5%). 2,50,000. (Being the underwriting commission due to the underwriters).