Double entry accounting question


Jeff Williams

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,

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.




Jeff Williams

I should have also said I am only concerned with the GL transactions.



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




Jeff Williams

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.


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