a) State and explain which accounting concepts are applicable or should be followed in the following situations, giving your reasons for the concept chosen:

iii. The Managing director of a company earns a commission based on turnover. The amount of commission payable in respect of the year ended 31st December 2020 was paid in February 2021. No entry relating to the above commission had been made in the books as at 31st December 2020 which is the year ended for the company. (2 Marks)