Question

plz give me the journal entry for : 1.commission recieved.............5000 2.deposited cash into bank..........10000 & plz explain.

Answer 1

The journal entry for the above mentioned transactions are as follows :―

1. Commission received ₹ 5,000

Cash A/c. Dr... ₹ 5,000
To Commission A/c. 5,000

(Being Commission Received).

2. Deposited Cash into Bank ₹ 10,000

Bank A/c. Dr... 10,000
To Cash A/c. 10,000

(Being Cash deposited into Bank).

Now, Explanation for the above mentioned entries :―

1. 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”.

2. Cash deposited into the Bank :―

In this case the two accounts being affected are ‘Bank A/c’ and ‘Cash A/c’. Bank A/c is a personal account, Bank A/c will be debited in the entry as bank is the receiver of cash. According to the rule of personal account “Debit the receiver”.

On the other hand, Cash A/c is a real account, and as cash is going out, therefore Cash A/c will be credited according to the rule of Real account “Credit What goes out”.