entering commission deductions

[Daisy Blue]

Thanks, Colin.

I should have made that more clear, there is an Expense:commision account
already and, of course, a current account as an asset.

Thanks so much for your advice.
regards
Daisy

On Tue, Dec 1, 2015 at 7:49 AM, Colin Law <clanlaw at gmail.com> wrote:

> On 1 December 2015 at 07:19, Daisy Blue <3daisy55 at gmail.com> wrote:
> > hello all
> >
> > I receive an invoice each month, detailing the amounts collected on my
> > behalf, and the commission deducted. The balance is then paid into my
> bank
> > account.
> >
> > For VAT reasons, I cannot just enter the nett amount into the ledger.
> >
> > How can I deal with the transaction? The amounts collected to into
> > Income:Sales, and the nett amount into the current account.
> >
> > Would it be best to set up an account (in the agency's name) as an asset
> > within the ledger, then enter the transactions thus:
> >
> > Income: sales £7500.00
> > Commission $1500.00     Current account £6000.00
>
> Yes, except I believe the commission should be an expense account not an
> asset.
>
> Colin
>