Question

The manager .
of a firm does not want to show Commission
recieved of Rs 1,20,000
in the books of Account
to avoid a high rate in come tax but the
Proprietor the firm in sisted that it should
be record in the bookswhere will it be recorded
in ledger. ​

Answer 1

Answer:

commission received show on credit side of profit and loss account

commission received is income of our business

Commission account.

Dr cr

Date particulars amt date particulars amt

by cash

120000

profit & loss 120000

total. 120000. 120000

Trial Balance

particulars. Dr. cr

commission. 120000