Question

what will be the effect of commission recieved in advance in accounting equation

Answer 1

Explanation:

If a business firm receives any amount from any person in respect of any services rendered to help them for increasing the sale or helping in purchase of goods or any other business transaction, then this receipt will be treated as commission received.

Here, present the effects of the journal entry

In the books of Journal Entry

Particulars Amount Amount

cash A/C Dr. ****

To, the commission received A/C ****

[ Being commission received ]

NOTES: According to the Golden Rule, "Debit what comes in" so, cash A/C will be debited

Answer 2

Explanation:

Hola !

In receiving money advance will be benefit to one who had given money lend to any one.

Thanks !