Commission Paid to Sh. Sham Lal on goods sold
Answers
Answer:
There are so many ways to increase the sales of a business firm. One of them is to hire the people from out side to work on behalf of the business firm to increase the business. These people have the direct contacts with the customers or have a good network. These people are called as commission agents and they get the commission from a business firm in respect of getting the orders from the customers.
Answer:
Sham Lal A/c Dr
To Cash A/c
Explanation:
In order to increase the sale of a business often commission is given out to the people conducting sales as an incentive.
Thus Sham lal being the receiver of such a commission is debited and since the payment is being made to him by cash or bank account the very same account is being credited.