Journal Entry for Commission Received from Bheem



When a company or an individual provides services to a client, they receive a commission as a percentage of the total amount of the transaction. The commission is paid for the services provided, and it is an income for the company or individual who receives it. In this case, Bheem has paid a commission of Rs 1000 to the company for the services provided to him.



The journal entry for commission received from Bheem would be as follows:

Date | Account | Debit | Credit

- When the commission is received, the following entry is passed:

- Bank Account | Debit | Rs. 1,000
- Commission Received | Credit | Rs. 1,000



When the company receives the commission from Bheem, the bank account is debited, as the money has been received and deposited in the bank. The commission received account is credited as it is an income for the company.

The commission received is a revenue for the company, and it is taxable. The company needs to report this income in their income statement, and pay taxes on it. The commission received is also a part of the company's profit, and it is added to the retained earnings.



The commission received from the clients is an important source of income for the company. It is a reward for the services provided, and it helps in generating revenue for the company. The commission received needs to be reported in the income statement, and taxes need to be paid on it.

Bank A/C Dr 1000
To Commission A/C 1000
(Being cheque received
from Bheem as commission)