what catergorie capital and comission fall under. i think capital is owner equity and comission is income statement.

You are correct in your categorization of capital and commission. Capital is a type of account that falls under the owner's equity section of the balance sheet. It represents the owner's investment in the business and includes funds contributed by the owner or retained earnings.

Commission, on the other hand, is a type of income that appears on the income statement. It represents revenue earned from sales or transactions where a commission is received.

To determine the specific category of a financial item like capital or commission, it's important to understand the basic structure of financial statements. The balance sheet reports a company's financial position at a specific point in time, while the income statement shows its financial performance over a period. By analyzing the nature of the transaction or item, you can determine where it should be classified.

To categorize capital or commission correctly, here's what you can do:

1. Consider the purpose and nature of the item: Determine whether it represents an owner's investment (capital) or revenue (commission) earned from sales or transactions.
2. Review the financial statements: Identify the respective sections of the balance sheet (such as owner's equity) and income statement (such as revenue) where similar items are typically recorded.

By applying this thought process, you can correctly categorize financial items like capital and commission.