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GCE Financial Accounting 1990 Question 41

Question 41

Final Accounts of a Sole Trader

Commission received is entered on the

  1. A.credit side of the Profit and Loss Account
  2. B.credit side of the Trading Account
  3. C.credit side of the cash book
  4. D.debit side of the Profit and Loss Account
  5. E.debit side of the Trading Account.
Show the answer and explanation

Answer: A (credit side of the Profit and Loss Account)

Explanation

Commission received is extra income, credited in the profit and loss account.