Advisory Fees Expense Journal Entry

Advisory Fees Expense In Accounting

Advisory Fees Expense is an Expense from the point view of client’s business but from the point of view of company's business, it is a revenue.

When the client paid advisory fees to the professional consulting company for getting services, then the following entry is recorded as shown below:

                                   (Assuming Client’s Business Paid Advisory Fees Expense Of Rs. 3000)

                                                       Advisory Fee Expense a/c  3000

 

                                                                                                        Cash a/c / Bank a/c  3000

 

                                                                 (Advisory Fees Expense Paid For Cash / Bank)

Advisory fees expense is recorded in the Income Statement of the client’s business as it is an Income Statement Account.

The journal entry for advisory fees expense paid by cash / bank i.e., through cheque or check, is recorded under both Cash Basis of Accounting System and Accrual Basis of Accounting System.