Question

commission received for sales of machinery is a​

Answer 1

Answer:

Journal entry of received for commission:

Cash/ Bank A/c ……. Dr

To Commission A/c

[Being received commission]

Cash A/c Debit because the cash is (Real Account), and comes in, any type of assets comes in is debit based on Golden rules.

Commission A/c Credit because the Commission is (Nominal Account) and one type of Income and Income is also Credit. Based on the Debit and Credit or Golden Rules.

Rules:

Cash - Real Account - Comes in - Dr

Commission - Nominal Account - Income - Cr

Golden Rules:

Personal Account:

Debit the Receiver, Credit the Giver

Real Account:

What cames in Debit and what Goes out Credit

Nominal Account:

Expenses & Loss Debit, and Income, Profit Credit

I hope this answer helps you.

Answer 2

Answer:

Explanation:

Commission Received refers to a percentage amount received by the company (or) an individual on the total sales incurred. It is an indirect income/revenue recorded on the credit side of the profit and loss account.