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PostPosted: Fri Dec 27, 2013 4:46 am 
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Joined: Fri Dec 27, 2013 4:12 am
Posts: 1
Hi, I'm hoping somebody can advise me about the best way to record this account for my small business. I'm a sole trader contracted to work in a particular office, and I pay fees and commissions to the business I'm working from.

Each fortnight the following happens:
- I pay rent and commissions, includng GST, to the business I'm situated in. These amounts vary from one fortnight to another as part of the fees are percentage-based.
- I also do some work for a particular customer who holds a contract with the business I'm working under. For their own reasons, rather than pay each of us contractors direct, this particular customer pays their account directly to the business.
- The business I'm working under counts this as my income, and as such I am charged a percentage of this income.
- Rather than the business add me to a payroll and pay me this income direct, it is credited to my charges for rent and other fees.

As I understand it, because I'm paying GST on the full amount of the fees I'm charged, I need to record the full amount as an expense and record the deduction as income. I can't just record the amount I'm actually paying, post-deduction - correct?

In my accounting software (Quickbooks Online), I have the option of listing the Business name I am working under as either a customer or a supplier. It won't allow me to record income from a supplier, but it will allow me to record both income and expenses relating to a customer. So my first thought was to make the Business a "customer", thinking then it would record charges and income viewable in a way that might make it easy to see how much I owed the Business or how much it owed me. But annoyingly, it doesn't appear to record it in any way that the two are related. AND it records the income part of it as "Assets" for my small business. I have no accounting training whatsoever, and I have no idea what this means, if anything, for income tax or business purposes, and if it is appropriate to record it this way. My main question is, is it?

If not, how should I be recording this?

(Sorry for the length, but it's not easy to explain all this!)

PostPosted: Fri Dec 27, 2013 1:05 pm 

Joined: Mon Mar 29, 2010 7:47 am
Posts: 69
How are you recording the revenues from the client that pays your landlord/lessor?

That A/R could be "cleared to the rent/lease expense, ( I think you said there is a % fee as well).

It seems as though you are trying to set up an entry to reflect the fact the cashflows from your client to the lessor/landlord.

That's how I'd record it. Simply DR - AR (client) CR - Revenue
then draw on that AR account as the client pays the landlord/lessor cash, DR the expense/commission.

Oh and how the post reads, it looks like you are recording the revenue twice, once from the client, and once from the Landlord/lessor

PostPosted: Sun Dec 29, 2013 6:18 pm 

Joined: Wed Mar 11, 2009 2:16 am
Posts: 75
Say that customer paid your landlord $600

Try making a journal entry like this...............debits`````credits

........................................Sales income...................600

........................................Rent expense....600

Also Quickbooks allows you to put in a name on each line of a journal entry, so you could put in the name of your landlord on the rent line and the customer on the income line.

 Post subject: Monily Bookkeeping
PostPosted: Wed Nov 22, 2017 9:36 am 
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Joined: Wed Oct 04, 2017 11:55 am
Posts: 477
Monily started as a simple bookkeeping processing organization. However, in time, it acquired professional expertise and expanded business operations bringing more effective talents onboard.
Organize your finance books

PostPosted: Mon Sep 24, 2018 5:07 am 
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Joined: Mon Sep 24, 2018 3:07 am
Posts: 25
The account record stores all the information about the account you need to track and manage. When you access an account record, general information about the account appears at the top of the page. This includes the account number, type of account, and report classification.
To verify whether or not an account is a control account, view the account summary information on the top of the account record.

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