Help me in a complex journal entry !

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Hi everybody ! kindly, help me journalizing the following entry !

Our client is an service provider, and earns money on commission basis.

He had opening balance of 10000 rs. Now, this year he gets money for the last year's services.

"if i try to pass entry like cash a/c dr  to commission a/c then the amout has to be deducted as well from the debtors right! so, if i pass cash a/c dr   to su. debtors a/c then the commission received will not appear in credit side of p&l a/c. Hence, what entry is right ! "  especially, if i have to pass entries in tally. thanx

Replies (24)

You earn commission or your client earns? I am confused?

Cash A/c Dr      XXX (money received now)

     To Debtor A/c             XXX (previous year receivable amount)

     To Commission A/c  XXX

As you are saying ur client is having an opening balance , it means u have considered this income in earlier month or year. If it is so then u are not required to credit commssion a/c. Then your entry will be
Cash/Bank A/c............. Dr
      to Debtors A/c.

Now if you have not considered this income earlier in books of account then your entry should be...
Debtors A/c.............Dr
   To Commssion A/c

Cash/Bank..............Dr
   To Debtors A/c

I hope you got the logic. If u still have any doubts.....then feel freto ask.

Regards

Varsh*t Shah

Varsh*t is right,

 

Please clarify which account your client having Rs.10000 balance.......

First clarify your question

VArsh*t Shah is Right.

Varsh*t shah is correct.

i agree with mr.  shah, u must have credited comm. a/c against the debtor in prev. yr now u r getting pmt of o/s  balance so the entry should be  likeone;

      casha/c             dr.                 **

             to        dedtor                               **

 

Cash A/c.........Dr.

To Sun.Dr's A/c

As you have mentioned commission is the revenue generator (sales) for the firm.

So , previous year definitely they will account the revenue, when the service provided.(thats y op. balance for Debtor) So

this year it shoul be, when cash received;  

                                       Dr  Cash A/c

                                        Cr. Debtor A/c

Thank you

The entry is

Cash A/c Dr

   to Debtors A/c

The reason for non applicability of

cash a/c dr 

  to commission a/c

is the Commission A/cis already credited in P&L A/c on last year as the Entry

Debtors A/c Dr.

  to Commission A/c thats y commission A/ cwill not come.

The entry is

Cash A/c Dr

   to Debtors A/c

The reason for non applicability of

cash a/c dr 

  to commission a/c

is the Commission A/cis already credited in P&L A/c on last year as the Entry

Debtors A/c Dr.

  to Commission A/c thats y commission A/ cwill not come.

I think the query is solved now...!!

When your company have provided service Assuming entry was passed S. Debtor A/c.............Dr. To Commission A/c Now when u are receiving the same commission the entry will be cash/Bank a/c..............Dr. To S.Debtor....A/c


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