We are keeping books for a T mobile franchisee and have come across their reporting as below
Vat £31.67
Franchise Sales -£28.22
Payments collected on other providers (creditors) £272.27
Banking for the day £275.72
We using the above, did as below
Cr Sales tax £31.67
DR Sales £28.22
Cr Creditors £272.27
Dr Bank A/c £275.72
Now on the report, it states Franchise sales minus 28.22 for the day. How ever when we cross checked the additional reports, it breaks down as Sales £218.28 and Discounts given -£246.50.
So I am of the opinion we should be crediting Sales a/c with £218.28 and Dr Discount a/c with £246.50. Also what would be the tax code for discounts - T9? The discounts allowed mostly contain ''Franchise Discount ''
Please advise if I am correct in thinking that we should account for discounts, so that vat reporting is done correctly and also the turnover would be correct?
