Sapna Takia In: Category - Journal EntriesWhat is journal entry for commission received?commission receivedjournal entry ShareFacebook1 AnswerVotedRecent Dheeraj 2020-08-30T22:01:23+05:30Added an answer on August 30, 2020 at 10:01 pm Commission Received refers to a percentage amount received by the company (or) an individual on the total sales incurred. It is an indirect income/revenue recorded on the credit side of profit and loss account. The term “commission” is more likely used in the stock market which is paid to a broker on the sale of shares (or) securities.Journal Entry for Commission ReceivedNowadays many organization uses a bank account for every business transaction i.e., either to make or receive payment. The journal entry on the commission received can be recorded in two different approaches of accounting. They are1. Traditional Accounting ApproachParticularsL.F.AmountNature of AccountAccounting RuleBank a/c XXXPersonalDebit- The Receiver To Commission Received a/c XXXNominalCredit- All Incomes and Gains(Being commission received)2. Modern Accounting ApproachParticularsL.F.AmountNature of AccountAccounting RuleBank a/c XXXAssetDebit- The Increase in Asset. To Commission Received a/c XXXIncomeCredit- The Increase in Income.(Being Commission received)ExampleOn 1st March, Anna Ltd. received a commission amounting to 70,000 through cheque. Journalise the following transaction.DateParticularsL.F.AmountNature of AccountAccounting Rule1st MarchBank a/c 70,000AssetDebit- The Increase in Asset To Commission Received a/c 70,000IncomeCredit- The Increase in Income.(Being commission received through cheque)0Reply Share ShareShare on FacebookShare on TwitterShare on LinkedInShare on WhatsAppLeave an answerCancel replyYou must login or register to add a new answer.