Hi, I come across a few of these a year and until this one I have managed to work it out (eventually) but with this one I am totally stuck, I don't know if it's because I've been going over and over it and I can't see straight anymore.
This client also has an accountant so I'm not actually filing the info in a tax return, just preparing the spreadsheets for their accountant.
I've attached a PDF
I have a client who has a holiday let and it's managed by a company that send these ridiculous statements, I know how much they have been paid after all deductions and the original amount the property is let out for but all the deductions in between are not clear, and I can't add it back up from the amount paid to the original amount let for.
I am expecting a few more of these kind of clients soon so I really need to get a hang of it
If anyone can work this out I would be most grateful
I'm not exactly sure what I am after extracting from this, I think I just need to make sense of it.
The statement didn't seem too bad to me but you need to view it as three segments.
Note that payment is a deposit and then later the balance. If you looked at each account it would make more sense as on its own the deposits and balances on that PDF do not relate to the same entries. i.e. the three deposits will have balances in a subsequent statement and the two balances will have deposits in a previous statement.
Ok, now we have the data flow covered lets take a look at the structure oif the statement.
Break the PDF down into its constituent parts which is :
- Amount due : in total / To Owner
- Amount paid Prevoiously : To the Owner / in Commission / VAT on Commission
- Amount paid this time : To the Owner / in Commission / VAT on Commission
Now personally I don't like the date sequence of the statement but that aside lets go through it to explain the interaction between the three segments and give an example using one of the two balance entries (the deposits have already been handled for these which is the Paid Previously side). I've slightly colour coded it so that you can easily see where the figures come from.
To calculate it out take the base cost and subtract the due to owner.
512.71 (total due) - 389.65 (due to owner) = 123.06 (due to agent)
of the 389.25, 129.75 was paid previously to the owner and now the balance of £259.90 is paid (129.75+259.90 = 389.65)
So, now we have the commission element which includes VAT.
of the 123.06, 40.98 (34.15+6.83) was paid previously and now the balance of 82.08 (68.40+13.68) is taken (40.98+82.08 = 123.06)
See, quite simple when you break it down and realise the business logic behind the seperation of the deposit and balance. From a bookkeeping perspective you do not need to concern yourself with the paid previously part of that, only the paid this time.
Hope that all makes sense,
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
4th line down the standard cost of the holiday is £386 but the owner only receives £293.36. This has been received in 2 parts £97.69 deposit previously plus £195.67 balance on this statement. The commission is £77.20 plus £10.44 which is £92.64. That's the difference between £386 and £293.36
Assuming that the statement raised by the holiday people is in effect the "invoice" from the owner I would be inclined to treat it as follows.
Income received £1176.20 Expenses (commission) £282.29
I've done that by adding the commission on this statement plus the VAT to the amount due then treating that as the expenses.
I've never seen such a cock eyed statement as this before but my workings makes sense to me, hopefully one of the others can correct me if I'm wrong.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
no worries. Think that we got to the same conclusion by different routes.
Lol. looking at the way we've approached it we've done it like a tag team with yourself taking the 4th line and me taking the 5th. And both of us recognising that there was little point using the first three for our examples.
Teamwork matey ;)
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Glad to be of help Rachel. The best thing I like about this forum is it's community spirit, everyone helping each other.
Also it tests me, usually I have to be reasonably certain that I know the answer before replying, and if I only think I know the answer I'll sit back and let someone else answer , then see if I'm right. I gain quite a lot from that.
This one I took a slight gamble as I was almost sure but not completely, hence my little get out clause in the reply It was great to see Shaun's post where we had approached it slightly differently but arrived at the same outcome.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
this is a GREAT help!!! 
