I'm new to doing the accounts for a Country Rock Band. There are very few accounts, and it should be quite simple. I've just issued an invoice that is due for payment in July 22. As I'm using double entry, I have credited the Trade Debtors account with the invoice amount because they owe the band, and debited the Band Income account with the same because the Band is owed. Is this correct? And presumably, when the venue pays the band, I need to debit the Trade Debtors and credit the Band's bank account.
I'm new to doing the accounts for a Country Rock Band. There are very few accounts, and it should be quite simple. I've just issued an invoice that is due for payment in July 22. As I'm using double entry, I have credited the Trade Debtors account with the invoice amount because they owe the band, and debited the Band Income account with the same because the Band is owed. Is this correct? And presumably, when the venue pays the band, I need to debit the Trade Debtors and credit the Band's bank account.
The transaction should have been cr income dr customer. This will then show up as a trade debtor on the balance sheet. When payment is received you cr customer and dr bank.
-- Edited by Leger on Sunday 8th of May 2022 12:10:54 PM
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
