direct/indirect income

dear frnds

whenever direct income occred(related to nature of business for eg., sale of goods)

we give to debit to party a/c(at the time of J.V), BUT

whenever indirect income occured (eg., commission),and amount received after 1 or 2 months. can we treat that person as a debtor upto cash received?

is it wrong to give debit to income receivable a/c(at the time of J.V)

please clarify my doubt frnds

thanks...,

at the time of J.V

Replies (2)

we sholud treat that person as debtor upto the amount not recevied from his side

you should group it under the head debtor for commission

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