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Post Info TOPIC: Barter Goods
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Newbie

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Barter Goods
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Can anyone help me out with accounting for items bought or sold via barter (under a trade credit system)??

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Hi there

I would expect you have to account for these at the current market value, and the scheme/system may have some sort of measurement or points system in place where you can measure these in £s.

Is the scheme Bartercard or something else?

John Gesch
The Accountants Circle
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John Gesch
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Newbie

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Hi -yes it is Bartercard, so I have a value and invoices. They also show VAT. We have both bought and sold items through Bartercard. I want to make sure our books are correct and our creditors and debtors show that these items have been paid but no money changes hands.

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For these... just treat it all the same as anything else.

Add another bank account to the ledger, "Bartercard", and consider this just another bank account. Reconcile it to the statements you receive, and make the receipts and payments to and from it that are done through Bartercard just as you would with a typical bank account.

All invoices, expenses, VAT, Bartercard charges and so on... all treated the same as usual - just remember to use the "Bartercard" bank account when receipts or payments are made. The "money" that changes hand is then handled through this account and you shouldn't have any problems.

Hope that helps!

John Gesch
The Accountants Circle
Excel Templates | Wholesale Support Services | Accountant & Bookkeeper Blogs

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John Gesch
The Accountants Circle
Online Tools & Excel Templates | Online Map Directory | Accountant & Bookkeeper Blogs

PMC


Newbie

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Posts: 3
Date:
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Many thanks for your help John - that makes sense to me. I'd been told to allocate all the bartercard transactions to a short term creditors pot but surely that would mean they would appear twice as a liability if I use the bank account option (which makes sense as I can pay off the suppliers and customer accounts)

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