If Advance Commission paid:
[Debit] Prepaid Commission xxxx
[Credit] Cash/Bank xxxx
If advance commission received:
[Debit] Cash/Bank xxxx
[Credit]Unearned Commission xxxx
The journal entry for receiving commission is as follows: Cash/Bank [Debit] XXXX Commission[Credit] XXXX
Debit Commission expense Credit Cash / bank
debit commission expensecredit cash / bank
[Debit] Cash account xxxx [Credit] Commission received xxxx
Journal entry:[Dr.]Bank account xxxx[Dr.]Cash account xxxxx[Cr.]Commission Received xxxxCommission received is credited because it is our income and incomes are credited.
The journal entry for receiving commission is as follows: Cash/Bank [Debit] XXXX Commission[Credit] XXXX
debit commission receivablecredit commission income
Debit commission expenseCredit commission payable
Debit Commission expense Credit Cash / bank
[Debit] Commission expense xxxx [Credit] Commission payable xxxx
debit commission expensecredit cash / bank
[Debit] Cash account xxxx [Credit] Commission received xxxx
Debit cash / bankCredit commission received
Journal entry:[Dr.]Bank account xxxx[Dr.]Cash account xxxxx[Cr.]Commission Received xxxxCommission received is credited because it is our income and incomes are credited.
[Debit] Commission paid xxxx [Credit] cash / bank xxxx
Post to Commissions Earned, an income account and Commissions Receivable, a current asset account.
Compound journal entry is that entry which records more than one business transaction in one single journal entry.