Hi All, I need help please! I have a client who is an estate agent and they have started doing lettings. The problem I've got is that they get money into their client account from the tennant for rent, which is then paid out of the client account to the landlord.
They then take a rental commission.
Eg. They get paid in £850.00 from the tennant. £803.25 gets paid to the landlord. Therefore their commission is £46.75.
The problem I've got is what code to enter this against/where to put it. The rent received is not 'income' as it is paid out again. At the moment it is sitting in a 4000 code which is incorrect as it is giving them a false figure for income. The rent paid out is sitting in a 5000 code.
Advice please - it's driving me mad! (Plus making me feel stupid and the books are going to the accountant for year end next week and I want to get it right!!)
Use a sundry creditors code. Pay the rent into it, and then the rent out of it, and you'll be left with the commission which can be moved to a sales code.
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
