Question

Commission received A/c will have __________.

• A. Debit balance
• B. Credit balance
• C. Nil
• D. Debit or credit balance

Answer 1

Answer: (B)

Credit balance

Commission received is an income therefore it is a Nominal Account.
The rule for Nominal Account is

Debit- All increase in expense or losses

Credit- All Increase in Income and Gains
As commission is an income therefore, it will have credit balance.