Hi all, I am a newly qualified bookkeeper and was wondering if anyone could help with the following scenario based on a client:
Business A (my client) invoices Business B £100 for its services. The agreement they have is that Business B takes £10 off every invoice as commission and so Business A receives £90. Business B does not raise an invoice for the commission charged.
I'm wondering how best to account for this £10? I had thought about registering £100 as payment received in the bank and then doing a journal entry for the £10 crediting the bank and debiting commission expenses?
Also, does anyone know if there are any VAT issues surrounding this?
Any help would be much appreciated!
Thanks
Edited at 29 Oct 2012 12:06 PM GMT
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