What is Commission Account
It is a remuneration, compe nsation or fees received b y sales ma nager, b roker or a n agent from the company against the services rendered. For Example, a sales ma nager provides his / her services to sell the products to customers through various methods such as through Email Marketing, phone calls, advertisements, blogging and other ways and hence earned commission on meeting sales targets. Usually, whenever a purchase is made, then he / she earns a percentage on Sales made as a commission. Commission may be on sales basis or on performance basis depending upon the strategy adopted by the Management of the sales department of the company. Commission Account is an operating expense for the company and it is recorded in the Income Statement at the end of the accounting. However, it doesn’t have any balance as it is a Temporary Account . According to the Rules of Debit And Credit , we debit it, when it incurs and credit i...