Performance Fee Journal Entry
A performance fees is paid to investment manager for managing the Assets of a client in order to generate positive returns on investment created for such client. The investment manager manages the assets of the business of the client to generate profits on investment. When, performance fees is paid to investment manager for cash / bank, the following journal entry is recorded as shown below: Performance Fees Expense a/c XXX Cash a/c / B ank a/c XXX ...