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Get complete step-by-step solutions for USHA Publication +1 Elements of Book-Keeping - Chapter No. 2 - Theory Base of Accounting. Study double-entry system details, practice timed problems, and verify answers directly.
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 |
(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 the 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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Also, Check out the solved question of all Chapters: –
Chapter No. 2 - Theory Base of Accounting
Chapter No. 3 - Origin of Transactions
Chapter No. 4 - Vouchers and transactions
Chapter No. 6 - Accounting for Goods and Services Tax(GST)
Chapter No. 9 - Other Subsidiary Books
Chapter No. 10 - Journal Proper
Chapter No. 11 - Trial Balance
Chapter No. 12 - Bank Reconciliation Statement
Chapter No. 14 - Provisions and Reserves
Chapter No. 15 - Bills of Exchange
Chapter No. 16 - Rectification of Errors
Chapter No. 17 - Financial Statements - (Without Adjustments)
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.