Question

Q:The following transactions were completed by Mr. Saad, a sole trader:

1. Received commission in advance through a cheque of Rs. 12,000.
2. Issued a cheque for Rs. 44,500 to Mr. Ali in full settlement of his account of Rs. 45,000
REQUIRED:
Make entries in General Journal

Answer 1

Answer:

bank A/c .....Dr 12000

To commission A/c 12000

(being commission received in advance)

Mr.ali A/c.....Dr 45000

To bankA/c 44500

To profit&lossA/c 500

(being account of Mr ali settled)