Question

5) Classity the following accounts into assets, capital liabilities, expenses/losses and revenue/pains a) Interest Account b) Interest received Account e) Land and building Account .) Debtors Account e) Commission Account 0 Commission Received Account a) Bills payable Account h) Outstanding commission Account 1) Rent Account D) Sales Account 1) Drawings Account 1) Bank Loan Account​

Answer 1

Answer:

Concept-

Items are classified according to their nature.

Solution-

• Interest account-  Expense
• Interest received account- Revenue
• Land andbuilding account- Assets
• Debtors account- Asset
• Comission A/c- Expense
• Comission received account- Revenue
• Bills payable account- Liability
• Outstanding comission- Liability
• Rent account- Expense