Income that is not from sales: rent and commission

Sales is income from selling the goods or services the business trades in.

A business can earn other income too. Each kind has its own income account, kept apart from Sales, so the sales figure shows only trading.

Rent received

rent paid to the business by a tenant

Commission received

payment for handling or selling something for another firm

Interest received

interest the bank pays on money held

Holt Hardware lets the flat above the shop to Mr Ellis for £450 a month. It also takes in parcels for Swift Parcels, which pays £0.50 for each parcel handled. Ignore VAT in this room.