Question

Following transactions given below. Find the capital at end.
1) Start Business with Rs. 40000
2) Commission paid in advance Rs. 1000 3) Accrued Commission Rs.2800
4) Commission due but not paid Rs. 800 (a) 38200 (b) 39000 (c) 42800 (d) 42000​

Answer 1

Answer:

o yaarn nahh baka mali ehh hshhsh

Answer 2

The capital at the end will be; A) 38200

• Commission paid in advance is an unearned income. Till the time, it is accrued,  this will be shown as liability in the balance sheet. So we will deduct it from the capital.
• Accrued Commission is also known as accrued liabilities is an expense that is recognized on the books before it has been paid. This will not be deducted from the capital.
• Commission due is a charge or the fees that have to be paid and so this will be deducted from the capital money.

To calculate the answer, we deduct the charges that are mentioned above =

40,000-1000-800= 40,000-1800= 38200

The capital at the end is RS. 38200.