Some livestock has been sold at a market gross 869.00 then theres charges such as commission, washing and vat, net amount he banked being 821.97. I am doing the bookkeeping manually in excel and was wondering how I would record this? Would it be 869 on the income page and then the expenses along with the vat on the expenses page?
I would agree that the hammer price of the sale is entered as a whole (£869), and the auctioneers commission, and other expenses are entered seperately.
I would not make a single entry of the hammer price, less the commission and expenses, as this would artificially lower the turnover, and if turnover is high enough may also affect the VAT registration threshold.
