Where do we record interest received, commission received or rent received in Tally A. Contra B. Payment C. Receipt D. Journal

Contra
Payment
Receipt
Journal

The correct answer is D. Journal.

A journal is a book of original entry in which all financial transactions are recorded in chronological order. It is the first step in the double-entry bookkeeping process.

Interest received, commission received, and rent received are all income items. Income items are recorded in the journal as a debit to the income account and a credit to the cash account.

The other options are incorrect.

A contra account is an account that is used to offset the balance of another account. For example, the allowance for doubtful accounts is a contra account that is used to offset the balance of the accounts receivable account.

A payment is a transaction in which money is paid out. Payments are recorded in the journal as a debit to the cash account and a credit to the appropriate expense account.

A receipt is a document that is issued to acknowledge the receipt of money. Receipts are not recorded in the journal.

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