journalise the following transaction:
Received commission Rs.25000 half of which is in advance.
Answers
When commission is received :
Cash A/C. Dr. Rs.25,000
To Commission A/C. Rs.25,000
(Being commission received )
At the time of transfer of commission to Profit and loss A/C :
Commission A/C Dr. Rs. 12,500
To Commission received in Advance A/C. Rs.12,00
Answer:
Explanation:
In the books of the journal entry
particulars amount amount
cash A/C Dr. 25000
To, Commission received A/C 25000
[ being commission received Rs. 25000 ]
commission received A/C Dr. 12500
To, commission received in advance A/C 12500
[ being commission received in advance ]
workings:
Half of the commission received in advance = ( 25000 / 2 ) = 12500