what catergorie capital and comission fall under. i think capital is owner equity and comission is income statement.
Capital and commission fall under separate categories in accounting.
Capital refers to the owner's equity in a business, which represents the owner's investment in the company. It represents the owner's ownership interest and can be calculated as the difference between the assets and liabilities of a business. Capital accounts can include contributions made by the owner, retained earnings, and any other forms of capital investment.
Commission, on the other hand, is typically considered as part of revenue or income on the income statement. Commission income is earned by individuals or companies for the services they provide, such as sales commissions or brokerage fees. It represents revenue generated from sales or transactions that involve a commission.
In summary, capital falls under the category of owner's equity, while commission falls under the category of revenue or income on the income statement.