Journal Entry for Received Commission of Rs. 700 from Ram

When a business receives commission from a client, it must record the transaction in its books of accounts. The following journal entry will be passed to record the received commission of Rs. 700 from Ram:

Date: [Date of Receipt]

Account | Debit | Credit
--- | --- | ---
Bank Account | - | Rs. 700
Commission Received | Rs. 700 | -

Explanation:

The journal entry above is based on the following points:

Debit Side:

- Bank Account: The bank account is debited because the commission received is deposited in the bank account.

Credit Side:

- Commission Received: The account is credited because the business has received commission from Ram.

Conclusion:

This journal entry clearly shows the impact of the received commission on the business's financial position. By recording the transaction in its books of accounts, the business can track its income and expenses accurately. It is important to follow the standard accounting principles and guidelines while recording transactions to ensure accurate financial reporting.

Commission A/c ...Dr Rs 700
To commission received A/c. ...Dr Rs 700