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| Commission Received Journal Entry |
When a business receives a commission, it must record the commission receipt transaction in its accounting records. And whatever commissions will be entered in the records, it will depend on the nature of commission. but here's a common scenario given for recording commission income.
Journal Entry for Commission Received
Cash or Bank Account Debit
Commission Revenue Account Credit
- Commission Revenue The "Cash" or "Bank Account" is debited because of the increase the Asset i.e cash or bank balance.
- The "Commission Revenue" account is credited because of recognizes the commission income.
This journal entry indicates that the business has earned the income i.e commission income.
