New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Commission received in advance is of the nature

    of
    A Real account Correct Answer Incorrect Answer
    B Personal account Correct Answer Incorrect Answer
    C Nominal account Correct Answer Incorrect Answer
    D Intangible account Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Commission received in advance is an example of a representative personal account. A representative personal account is a type of personal account used to record transactions with individuals or organizations on behalf of others. In this case, the commission received in advance represents an obligation to provide services to a specific client or customer in the future. As such, it is a liability owed to that specific client or customer, and is therefore recorded as a representative personal account.

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