Accounting entries for e-commerce

[Tan Chun Huat]

Can anyone advise if my understanding of accounting entries are correct for sales made on e-commerce website?

1. When customer made a purchase via e-commerce website and invoice raised to them (Part of the revenue will be my commission and part of it will be payable to seller):-
Dr Receivables $100
CR Commission Revenue $20
CR Payables (To sellers) $80

The amount will be collected by the payment gateway merchant and paid to us few days later.

2. (a) Upon receiving payment from the payment gateway merchant:-
Dr Bank $100
CR Receivables $100

(b) To knock off the Payables (To sellers):-
DR Payables (To sellers) $80
CR Bank $80

Not too sure if there are addtional entries to be made. Need the experts' view on this. Thanks.

Regards,
CH

 

[MMDub]

Section 2(B) is the entry once you pay the seller?

This looks correct to me unless sales tax as Cost of Sales are also involved

 

[FriendlyAccountant]

Seems ok to me. It is the correct method to the matter.

 

[hamza.el]

It's correct for me as standard explanation of accounting entries.