Journal Entry - Money Order

by Sudam Kumar
(New Delhi, India)


Q: What is the entry for the following:


Money order sent to Mohan - worth 500 Rupees. Money order commission of 10 Rupees.

Comments for Journal Entry - Money Order

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Journal entry
by: Anonymous

The entry is

Mohan A/c Dr 510

To cash 510

(Being an MO of 500 sent to Mohan Rs. 10 paid commission.)
journal
by: Anonymous

What entry is required for receive an money order?

The entry would be:

Debit Bank
Credit Income

(A money order is just a way to get paid instead of cash. But the money from the money order still goes into your bank account. So for accounting it's basically the same as receiving a cash payment into your account.)

- Michael Celender
general entry
by: abdul

mohan 500 dr
commission 10 dr

cash 510 cr
Answer
by: Anonymous

For sending a money order of 500 paying commission of 50 the entry would be :

Compound Entry

Mohan 500 ...... Dr.
Commission 50 ... Dr.
Cash 550 ....... Cr.

Simple entry

Mohan 500 ..... Dr.
Cash 500 ...... Cr.

Comission 50 .. Dr.
Cash 50 ....... Cr.

It is assumed that the money order excludes commission.

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