Received And Paid Cash For Services And Services On Account Journal Entry

Received Cash From Clients For Services Rendered

When service company rendered services to its client, the it received cash against such services. It is usually the main source of revenue for such company’s business.

Following journal entry is recorded for the amount of revenue received from clients against the services rendered as shown below:

                        Cash a/c / Bank a/c  XXX

 

                                                      Service Revenue Received a/c  XXX

 

                          (Cash / Check Received For Services Rendered To Clients)

 

If services rendered on account or credit, then following entry is recorded as shown below:

                      Accounts Receivable a/c  XXX 

 

                                                              Services Revenue Received a/c  XXX

 

                                            (Services Rendered on Account)

 

Paid Cash For Services Received From Service Companies

When a company gets the services from other service companies, then the company paid cash to such companies and following entry is recorded as shown below:

                             Services Fees a/c  XXX

 

                                                         Cash a/c / Bank a/c  XXX

 

                                                      (Services Fees Paid)

 

If the company paid for services on account or credit, then:

                           Services Fees a/c  XXX

 

                                                       Creditors a/c / Accounts Payable a/c  XXX

 

                                               (Paid For Services on Account)