Double entries for PAYE agency

Vtiling

Hi everybody,

I would have a queries about entries. I run a small PAYE agency - I file Tax Returns on behalf of my cients and also receive any refund to to them on their behalf on my bank account. So The scenario is: Revenue sends me €100 as a refund for Client ,,A,, I receive it on my bank account. Then I deduct the commission fee and resend €90 to the customer ,,A,, What corresponding entries should this transaction include? I actually know what it should include but is there any easiest way how to do it? any ideas? Thank you very much.

adrianw

Vtiling wrote: »

Hi everybody,

I would have a queries about entries. I run a small PAYE agency - I file Tax Returns on behalf of my cients and also receive any refund to to them on their behalf on my bank account. So The scenario is: Revenue sends me €100 as a refund for Client ,,A,, I receive it on my bank account. Then I deduct the commission fee and resend €90 to the customer ,,A,, What corresponding entries should this transaction include? I actually know what it should include but is there any easiest way how to do it? any ideas? Thank you very much.

The money you receive should go into a client money account. The €10 is sales. There is only one entry. Dr business bank AC cr Sales

Vtiling

Yes, I do in this way now - dr customer €10 and cr Sales €10. but because the bank reconcil. doesnt match I was thinking about this records:

1. when Revenue send the money on my bank account:
Dr Bank €100
Cr Customer €100 (as a liability)

2. then record the transaction of sale - doesnt have to be in the same day, because Revenue sends the money in part some time, so I have to wait until full amount is on my bank acc
Dr Customer €10
Cr Sales €10

3. When I send the remaining amount to customer:
Dr Customer €90
Cr Bank €90


And then I could reconcile the bank every day..... But seems to me to complicated..... so hoped for any easier way ...:)

Synode

Your postings are the correct way to do it in order to reconcile your client bank account and keep a proper record of who owns the money in your client account. Any 'shortcut' you take will not keep adequate records of these client monies