Management Fees Expense Journal Entry
Management Fees Expense is an Operating Expense for the company a nd it is paid to management company against the services received by it from managers or directors of the management company on the behalf of owners / shareholders of the company. When it is incurred, the following Journal Entry would be passed in the Book or Journal of the company as shown below: Management Fees Expense a/c XXX Cash a/c XXX (Paid Management To Management Of the Company For The Month) Sometimes, the company accrued the management fees called Accrual Management Fees , as it is not paid to managers in time, so according to Accrual Basis of Accounting , we pass the following Adjusting Entry at the end of the accounting period: Management Fees Expense a/c XXX