Question

commission credit which side Dr or Cr

Answer 1

Answer:

Because the Commission is (Nominal Account) and one sort of income, and income is also credit, the Commission A/c Credit.

Explanation:

• Depending on whether the commission is inbound or exiting, it is either a revenue or an expense. Revenues and costs are reported on a company's income statement rather than on its balance sheet.

• Amounts equal to Commissions previously paid to Agency for Cancelled Policies during a specific time period are referred to as Commission Credits.

• A commission should be recorded when it is paid using the cash basis of accounting, with a credit to the cash account and a debit to the commission expenditure account.
• If an employee is paid a commission, the corporation deducts income taxes from the amount of the commission.

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