Question No 1 Chapter No 2 – USHA Publication 11 Class

Q 1 CH 2 USHA 1 Book 2020 Solution min 1024x576 - Question No 1 Chapter No 2 - USHA Publication  11 Class

Question No 1 Chapter No 2

1. Calculate the commission income for the calendar year 2016 under cash system and accrual system of accounting

  Rs
Commission received in 2016 45,000
Commission accrued (due but not received) 4,400
Commission received in advance 3,200

 

The solution of Question No 1 Chapter No 2: –

 

(i) Cash System. The commission received during the year 2016 i.e. Rs 45,000will be treated as commission income

(ii) Accrual basis. The commission received for the year 2016 is treated as income, which is calculated as follows:

 
Particular
Amount
Commission received during year   45,000
Add: commission Accrued at the end   4,400
    49,400
Less: commission accrued in the beginning   3,200
Commission income   46,200

 

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