Double entry accounting question

Discussion in 'Accounting' started by Jeff Williams, Jul 9, 2007.

  1. I am developing a piece of software for use in a friends antique
    business. I have a problem identifying how to achieve the following in
    a double entry accounting system.

    An invoice is produced which contains a price + premium + tax(gst).
    Also this invoice may contain the following postage, packing, insurance,
    discount.

    The buyer pays the price + premium + tax(gst)
    The price if the lot is held in a trust account.
    the premium is paid to the Auctioneer.
    the discount is to be applied to the Auctioneer
    the postage packing and insurance are cost netural - the money expended
    is recouped and the auctioneer pays the amount and recovers the amount.


    I then need to receipt the money

    the buyer account is credited price + premium + tax(gst)
    the money goes to the trust account where the seller pays a commission
    and tax for the service. The Auctioneer get the money for the
    commission and tax.
    The vendors account is credited price - ( premium + tax(gst))

    Finally all parties are paid out.

    I am hoping someone can give me the correct way to apply these values to
    the accounts for a double entry system.

    At this stage I am only concerned with the invoice, receipt and payment
    of moneys. I will look at credits etc at a later date.

    Hoping someone can advise the DR and CR needed for each transaction.

    Regards
    Jeff
     
    Jeff Williams, Jul 9, 2007
    #1
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  2. I should have also said I am only concerned with the GL transactions.
     
    Jeff Williams, Jul 9, 2007
    #2
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  3. Why??

    Get quick books or I'll give you my copy of quicken, its free??

    CBS
     
    ChenangoBusinessServices, Jul 10, 2007
    #3
  4. I get this answer all the time.

    Quickbooks or Quicken or any other application cannot handle an auction
    situation where at each auction bidder numbers start from 1 and there
    are multi vendors and there are auctioneer sheets, prices realised etc.

    Normal accounting packages are for accounting and not suited to the
    specialized market of an auction.

    Regards
    Jeff
     
    Jeff Williams, Jul 10, 2007
    #4
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