any one suggest me the following
Deposit accepted for Rs.10,000/- which includes commission @ 5% at the time of receipt and 1 % after 15 days.
is the following is correct entry?
Debit :cash A/c Rs.9400/-
Debit : Commission @ 5% Rs.500/-
Debit :Commission incurred but not due @ 1% Rs.100/-
Credit : 5% deposits Rs. 10000/-
Your entreirs are correct. only suggestion instead of debiting Commission incurred but not due, you can debit Prepaid Commission
Thank u Ramesh Sir,
Sir, What is accounting entry at the time of payment of 1% commission?
under which head i should kept the prepaid commission ?
I had recently joined NBFC company , can i ask any doubts regarding my jobs responsibilites ?
As your post, you mentioned 1% commission need to be paid after 15days but paid early. so it can be shown as prepaid expenses under Current assets. you can reach me at cma.rameshkrishnan @ gmail.com
Hi arup,
I am unable to understand your question. Can explain the situation properly.
You have accepted a deposit of Rs.10,000.
Commision is your expense or income.
please explain.
If u have received Rs.10,000 than your cash/bank a/c should be debited by Rs.10,000.
and you cannot accrue commision income or expense before the due date.
Explain the scenario properly. Please
Kindly give details pertaining to type of transaction and details about payer and payee.
Yes. Mr.CMA Ramesh Krishnan reply is correct
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