Question

Earned commission in Cash Rs. 900
Pass the journal entry​

Answer 1

Answer:

Under the cash basis of accounting, you should record a commission when it is paid, so there is a credit to the cash account and a debit to the commission expense account. You can classify the commission expense as part of the cost of goods sold, since it directly relates to the sale of goods or services.

Answer 2

Answer:

Cash  A/c                                                      Dr         900

   to Commission A/c                                                               900

(Being commission received in cash)

Analysis as per moderen accounting theory :

Cash A/c                 -    Assert      -      Increases          -    Debit

Commission A/c     -    Income    -     Increasing          -    Credit