I am at a loss on how to correctly enter this transaction. Any help would be appreciated! We have a Short Term Loan Account (other current liability) that is used when it is necessary to transfer money for a few days from a Trust Account into the Operating Account. The Trust Account holds premiums that are paid by our customers - the premiums include money that will be paid out to a company and our commission. We transfer our commission to our Operating Account (as Commission Income) at the time we pay the premium to the company that is owed. Here is the issue: The Short Term Loan has a balance of 11,600. On June 23 I made a deposit into our Operating account for $5202.71 (a debit to Cash and credit to Commission Income?). The money came from the Trust Account for some past commission that we caught in a reconciliation, they should have been transferred in April. So, I also needed to decrease the Short Term Loan account. I then made a General Journal Entry debiting Short Term Loan and crediting Commission Income. Once I made the GJ entry there was no change in my Operating Account balance - which should be correct because the money was already deposited in the deposit entry. My Balance Sheet report shows the Short Term Loan account correct - it now reflects a balance of $6397.29. HOWEVER, when I run a P&L and look at the detail on Commission Income it show increases from the original deposit AND the general journal entry so it is overstating the Commission Income amount. What would the correct entry be?