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Commerce · Q269

Accounting

Graduate and Post Graduate · Commerce · question 269

Q269

Salaries paid in advance should be shown on

A.
Asset side of the Balance sheet
Answer
B.
Liability side of the Balance sheet
C.
Credit side of the Trading account
D.
All of the above

Answer: Option A

Solution

Answer: Option A
Solution:
Salaries paid in advance should be shown on Asset side of the Balance sheet. An advance paid is recorded as a current asset in the company's balance sheet.