Journal entry Commission recieved
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Journal entry for Commission Received :—
The Two Accounts affected in this transaction are ‛Cash A/c’ and ‛Commission A/c’. Cash A/c is a real account and as Cash is coming in, therefore Cash A/c will be debited according to the rule of Real account “Debit what Comes in”.
On the other hand, Commission is a nominal account and It is a Income, as such, commission A/c will be credited according to the rule of nominal account “Credit all incomes and gains”.
So, the journal entry will be :-
-----------------------------------------------
Cash A/c. Dr ... [Amount]
To Commission A/c. [Amount]
(Being Commission Received).
-----------------------------------------------
The Two Accounts affected in this transaction are ‛Cash A/c’ and ‛Commission A/c’. Cash A/c is a real account and as Cash is coming in, therefore Cash A/c will be debited according to the rule of Real account “Debit what Comes in”.
On the other hand, Commission is a nominal account and It is a Income, as such, commission A/c will be credited according to the rule of nominal account “Credit all incomes and gains”.
So, the journal entry will be :-
-----------------------------------------------
Cash A/c. Dr ... [Amount]
To Commission A/c. [Amount]
(Being Commission Received).
-----------------------------------------------
Answered by
1
The answer to the following question is given below.
Explanation:
Books of (---limited)
Journal entries
as on (-----)
Date Account Title and Explanation Debit Credit
Cash \ Bank A\c Dr. xxx
To Commission received A\c xxx
(Being money received as commission)
⇒ Commission received is an income and all income must be credited according to Journal entry rule.
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