Sir,
In our business two kinds of charges we received.
1) commission receipt every day
2) service charges receipt.
1) for the commission receipt of every day , actually we send an invoice at the end of month
e.g. 01.01.2022 we received 5000 commission end of the month we raise a invoice.
how to entry.
2) Also the commission received by goods also.
kindly help.
I think in this case, commission is being received regularly throughout the month and you are raising invoice at the month end for the commission received during the month. In such case, it is to be treated as Advance Receipt of the Commission. Upon raising Invoice, at the month end, the Invoice amount gets adjusted against the Advances Received. If the understanding is correct, then Commission Received in Advance will be subject to GST.
Sir,
i.e Today morning we purchased 10000/- we buy for cash/bank. end of the day we received 500/- commission
This commission also we received as goods.
purchase ac Dr 10000
To Bank 10000
then we got commission as cash/bank
bank ac Dr 500
To commission 500
then again the commission we made purchase
purchase a/c dr 500
to bank 500
In the meantime end of the month we raise an invoice for the 500/- (for example) actually many purchases.
can we entry
commission receivable dr 500
to commission 500
if it is correct how to close the commission receivable sir?
CAclubindia
