Leaning Online

An Incentive Fees is a reward or incentive given to investment manager for managing the assets of a client’s business. It is also called Performance Fees as it is based upon the profits or positive returns gained in the utilization of the Assets of a client’s business. From the point of view of our business, it is an Expense which is recorded in the Income Statement . The journal entry to record Incentive Fees is shown below:                                         Incentives Fees a/c   XXX                                                                         Cash a/c / B ank a/c   XXX           ...