what is the journal entry for received commission from ram....is it comission acc - ram acc or cash acc - ram acc?
Answers
The journal entry for received commission from Ram would depend on the specifics of the transaction, and whether the commission is considered as income or is a payment for a service provided. Here are a couple of possibilities:
Commission income account - Ram account: If the commission received is considered as income for your business, then you would debit your commission income account and credit Ram's account.
This represents that your commission income has increased and Ram's account has decreased.
For example,
Commission Income A/c Dr. xxxx
To Ram A/c xxxx
Cash account - Ram account: If the commission received is in the form of cash, then you would debit your cash account and credit Ram's account. This represents that your cash on hand has increased and Ram's account has decreased.
For example,
Cash A/c Dr. xxxx
To Ram A/c xxxx
It is important to keep in mind that the journal entry should accurately reflect the nature of the transaction.
For example, if you received the commission as a means of payment for a service you provided to Ram, then the first journal entry would be more appropriate. If Ram paid you the commission as a separate transaction, then the second journal entry would be more appropriate.
Also, if the commission was paid by check or other non-cash means, you should record it as cash received, and make sure you record any necessary bank reconciliation.
To learn more about journal entry from the given link.
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