I do the accounts for a small taxi firm and one of his cars has been doing radio work for another firm, which involves a fair amount of credit work.
This other firm produces a weekly sheet listing the credits then deducts the radio rent. Occasionally payments have been made to other taxi firm when there is a shortfall. What is the best way to show this on the accounts?
My thoughts are to set up a dummy bank account and put credit as income and radio rent as expense, then a transfer between cash and dummy account when money has been paid. Would this be correct? I am using VT+
This thing is new for me but I think it is right there is no problem to do that, and main thing is that you want to do this thing legally, so there is no question of risk because you are talking about dummy account and for that you need bank, right?
