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Final Accounts of a Proprietary Concern — Book Keeping & Accountancy STD 11 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 11 Commerce / ArtsBook Keeping & AccountancyFinal Accounts of a Proprietary Concern2 Marks
Question
Income received in advance is a liability.
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Answer

This statement is True.
Income received in advance is the liability to the business because it has not yet earned the money and the business has an obligation to deliver the goods or services to the customer.

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