I need to enter cars that have been given to a client to sell but they only get commission for selling it. If I did a journal to show this should it look like this? My accountant said I need to set up a control account for the commission sales. Does this look like I'm doing the right thing.
This would give 'income' of £5k to your client. ie there are 2 credits to the P&L accounts....
If they do not buy the stock and purely receive a commission for selling then you should only account for the commission and from the info above these are the entries required:
On the actual sale date
DR: 1236 Commission Sales Control Account £1,000
CR: 4902 Commissions received £1,000
Then when the actual commission is received your entry would be:
DR: Bank £1,000
CR: 1236 £1,000
To clear the commission debtor
Does that help?
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Hi thanks for that.
Would it still be the same if the money is being paid into the second hand car dealers bank - so on the bank statement the whole amount £5k will appear on the statement.
