Question

classify into asset liability capital expenses and income ,prepaid rent, Umesha account, purchase account, sale's account, debtors account, commissions received in advance account, investment account, out standing salary account, drawings account, interest account, bank loan account​

Answer 1

Answer:

1) Prepaid Rent= Current Asset

2)Umesha Account= If Debtor then Asset if Creditor then Liability

3) Purchase Account= Expense

4) Sales Account= Income

5)Debtors Account= Asset

6)Commission Received in advance= Liability

7) Investment Account= Asset

8)Outstanding Salary Account= Liability

9)Drawings Accounts = Asset or can be shown as reduced from Capital account in Liability side

10) Interest Account= If received then income else expense

11) Bank loan = Liability.

Explanation: