Kalp Accounting Learning Articles

Commission is an expense which is paid to a person for achieving any target or for his work done/service rendered. Generally Commission based employee/person helps in the growth of Sales/Service. They are one part of Revenue Generator for a Business. Now let's discuss about what will be the Journal Entry and Ledger posting, when Commission is incurred but not yet paid. When Commission is incurred but not yet paid, the following Debit Ledger and Credit Ledger Accounts are affected. Debit Ledger is : Commission Account Credit Ledger is : Commission Payable Account Journal Entry Ledger Posting In Commission Ledger Account In Commission Payable Ledger Account Example : In the Books of M/s.Sawan Agrotech, Commission payable for the month of March' 2023 to Mr.Suraj Tripathy for ₹17,900/- not paid till dt.31/03/2023 Pass necessary Journal Entry and post them into their respective Ledger Account for the above transaction on dt.31/03/2023 In the above transaction, Debit Ledger is : Comm

Commission is an expense which is paid to a person for achieving any target or for his work done/service rendered. Generally Commission based employee/person helps in the growth of Sales/Service. They are one part of Revenue Generator for a Business. Now let's discuss about what will be the Journal Entry and Ledger posting, when Commission is paid through Bank Account. When Commission is paid through Bank Account, the following Debit Ledger and Credit Ledger Accounts are affected. Debit Ledger is : Commission Account Credit Ledger is : Bank Account Journal Entry Ledger Posting In Commission Ledger Account.  In Bank Account Example :   In the Books of M/s.Sawan Agrotech, Commission paid through State Bank of India Current Account No-01012053 to Mr.Suraj Tripathy for ₹29,450/- vide IMPS Ref No.AX034025 on dt.30/09/2022 for achieving his Sales target. Pass necessary Journal Entry and post them into their respective Ledger Account for the above transaction. In the above transaction, De

Commission is an expense which is paid to a person for achieving any target or for his work done/service rendered. Generally Commission based employee/person helps in the growth of Sales/Service. They are one part of Revenue Generator for a Business. Now let's discuss about what will be the Journal Entry and Ledger posting, when Commission is paid by Cash. When Commission is paid by Cash, the following Debit Ledger and Credit Ledger Accounts are affected. Debit Ledger is : Commission Account Credit Ledger is : Cash Account Journal Entry Ledger Posting In Commission Ledger Account  In Cash Account Example :   In the Books of M/s.Sawan Agrotech, Commission paid by Cash to Mr.Suraj Tripathy for ₹9,600/- on dt.31/07/2022 for achieving his Sales target. Pass necessary Journal Entry and post them into their respective Ledger Account for the above transaction. In the above transaction, Debit Ledger is : Commission Account Credit Ledger is : Cash Account Journal Entry Ledger Posting In Com