Commission Received By Cheques / Checks Journal Entry

Commission received by cheque / check is recorded by debited Cash Account and credited to Commission Received Account as shown below:

          Cash a/c  XXX

                            Commission Received a/c  XXX

                  (Commission Received For Cash)

If the cheque is deposited into the bank on the same date, then the bank account is used instead of cash account in the accounting journal entry as shown  below:

                                                           Bank a/c  XXX

                                                                         Commission Received a/c  XXX

                                                      (Commission Received By Bank)

We debit bank account as the depositor deposited the money into his bank account through cheque and credit the revenue account i.e., commission earned account as it is increasing.