Question

Ilustration 3. Rakesh started business as on 1st April, 2016 with a capital of
1,50,000. During the year, the following transactions took place:
7
1 Furniture purchased for cash.
2. Purchased goods from Mahesh on credit.
3. Sold goods (costing 10,000) to Mohan for cash.
4. Additional capital introduced.
5. Commission received in advance.
76. Paid to creditor (Mahesh) * 22,500 in full settlement.
-IZ Sold goods (costing 15,000) for * 18,000 out of which 5,000
received in cash.
Depreciation on furniture provided @ 10%.
20,000
25,000
14,000
20,000
2,000
​

Answer 1

Explanation:

commission received in advance will be credited because it's a liability of the firm