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• # 86204
• Mon 29 Oct 2012 12:02 PM

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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• # 86223
• Mon 29 Oct 2012 10:54 PM

Hi 

 A very big welcome to the forum. 

As the moderator can I ask if you contact the ICB for clarification on the work you can do as a student . It is hard to tell from your post if you are student and the system  has not updated that you are newly qualified .   I appreciate you may have other qualifications and maybe covered by these.  

Under the ICB code of practice you can not practice with out a Practice Certificate . Hence why you should check with the ICB  just in case it might effect you membership later. 

I am sorry in advance if your membership allows you to do this work and membership status is not updated .  

All the best Sarah and I wish you success in all your exams.  

• Sarah Douglas C.FICB

  HouseTree Business Ltd 

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• # 86231
• Tue 30 Oct 2012 10:45 AM

Hi Sarah,

Thanks for your reply.

As I still have a month or two left on my student membership, I have yet got around to updating it although I know I do need to get this and my practice license in order. The 'client' is actually my husband and I'm just taking a look at his books in a roundabout way at the moment and getting a few things clarified (as I'm very new to this) before I actually start doing his books properly - I didn't think this information was necessarily pertinent to the original post which was why I didn't include it.

Thanks

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• # 86238
• Tue 30 Oct 2012 01:13 PM

Hi again Sarah,

Just wanted to say thanks again for your reply as it did remind me I needed update my membership etc and it is all sorted now. Did you have any thoughts on my issue surrounding the commission?

Thanks

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