Advisory Fees Received Journal Entry

Advisory Fees Received Meaning In Accounting

Advisory fees in accounting means that a professional consulting company provides advice services related to financial and investment matters to it clients against the specified fees. For example, a real estate agent charges fees from its clieent in buying, selling or renting a house. Such fee is known as Real Estate Advisory Fee.

When advisory fees received for cash or bank (through check / cheque), then the following journal entry is recorded as shown below:

Advisory Fess Earned Journal Entry / Advisory Fess Received Journal Entry

                                                                   Cash a/c / Bank a/c  XXX

 

                                                                                                              Advisory Received a/c  XXX

 

                                                                     (Advisory Fees Received For Cash / Bank)

Advisory Fees Received In Income Statement (Accounting Treatment)

Advisory fees received or earned is a direct revenue for advisory businesses and it is recorded in Income Statement.