Question

Commission earned but not received with explanation what is it journal entry ​

Answer 1

commission receivable a/c Dr.

To Commission a/c

Answer 2

Commission Receivable A/c. Dr

to Commission A/c. Cr

(Being commission earned but not yet received)

• The commission earned but not received is an accrued income.
• Accrued income is income that is already earned but is not received yet until the time of making financial accounts.
• Examples of accrued income are income payables such as the interest of investment, rent from tenants, etc.
• These are adjusted while making the final accounts of the firm.