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How we treat with commission which is received in advance.......?? |
Answer» Commission received in advance is being treated : 1. Will be lessed from the concerned amount of commision (if commission is shown dr. Side of trial balance then it will be written in the dr. Of P&L a/c and if shown cr. Side of trial balance then will be written in cr. Side of the P&L a/c and the concerned amount of unearned commision will be lessed)2. And unearned commision will be shown in the liability side of balance sheet.?? | |