What is Management Fees Received Account

Management Fees Received Account is a Revenue Account for the management company, Directors or managers who performed their duties of Management on the behalf of owners or shareholders of the business and received a fees called Management Fees.

Management Fees Received Journal Entry

The entry would be as shown below:

                                                      Cash a/c  XXX

                                                                  Management Fees Received a/c  XXX

                                               (Management Fees Received For the Month)

For management company’s financial statements, it is recorded as a revenue on the Income Statement.

There is no normal or usual balance for Management Fees Received Account as it is a Temporary Account which is closed to Income Statement. However, when it is earned by the management company, then it is credited and when it is closed to Income Statement, it is debited.