Commission Received In Advance Is A Nominal Or Real Or Personal Account

Commission Received In Advance Is A Representative Personal Account / Commission Received In Advance Is What Type Of Account

Advance Commission / Unearned Commission or Commission Paid In Advance is not a nominal Account as it the commission revenue received in advance or which is not earned by the business but still the services are not rendered during the accounting period.

Commission received in advance is also not a real account as it is related with certain natural or living persons.

However, commission received in advance is a Representative Personal Account as it shows all of the clients from whom the company received commission in advance which is not actually earned by the company as still the services are not rendered during the accounting period. So, Account title “Commission Received In Advance” is created that represents all of the certain persons from whom the company received commission in advance.

So, commission received in advance is a personal account and not a real or nominal account.