Journal Entry and Ledger Posting for Commission Expenses paid through Bank Account

on

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

Journal Entry for Commission Expenses paid through Bank Account.
Ledger Posting

In Commission Ledger Account.

Commission Expenses paid through Bank Account - Posting in Commission Ledger Account

 In Bank Account

Commission Expenses paid through Bank Account - Posting 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,

Debit Ledger is :

  • Commission Account

Credit Ledger is :

  • SBI CA No-01012053

Journal Entry

Journal Entry for Commission Expenses paid through Bank Account - Example
Ledger Posting

In Commission Ledger Account

Commission Expenses paid through Bank Account - Posting in Commission Ledger Account - Example

In SBI CA No-01012053

Commission Expenses paid through Bank Account - Posting in Bank Ledger Account - Example


Location: Cuttack, Odisha, India

Comments

Post a Comment