Journal Entry for Income
Any monetary benefit arising from the business can be termed as income. Rent received, Commission received, Dividend earned, Interest received, etc are some examples of income. Income is treated as a Nominal account. Cash Account will be increased with the amount received as income, so it will be Debited and Income Account will be Credited according to the rule of the Nominal account.
Example 1: Commission received in cash ₹10,000.
Example 2: Dividend received in cash ₹2,000.
Example 3: Interest received in cash ₹500.