Help with double entry accounting


J

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,
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.

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

Please note: Packages like Quicken, Quickbooks etc will do the acounting
but not handle the auction process so they are not a solution this needs
to be custom software for the auction and trust account.
 
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T

Troy Steadman

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.
Double entry is always simple and is based around "Control Accounts".
Yours are:

Auctioneer's Bank A/C, Buyer's Deposit (you call it "trust") A/C, VAT
Control, Insurance etc Control (to make sure you are recouping your
Insurance etc Costs), Sales Ledger, Purchase Ledger Control...and so
on.
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.

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

Please note: Packages like Quicken, Quickbooks etc will do the acounting
but not handle the auction process so they are not a solution this needs
to be custom software for the auction and trust account.
I don't know what the VAT situation is with Auctioneers and a swift
Google doesn't leave me any the wiser. Hopefully Nogod Boyo is around
because VAT is probably the starting point. The double entry will flow
from there.
 
N

Nogood Boyo

I don't know what the VAT situation is with Auctioneers
that doesn't usually stop you guessing
and a swift
Google doesn't leave me any the wiser. Hopefully Nogod Boyo is around
because VAT is probably the starting point. The double entry will flow
from there.
It's not for me to offer free advice to people unable to provide the
service they are charging for.

In my experience (rapidly getting less current / relevant) few people
handling auction transactions (or other agency transactions, come to
that) get the VAT right. But it's all explained in the guidance issued
by HMRC.
 
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T

Troy Steadman

that doesn't usually stop you guessing
Keith has gone from this group so your welshness is wasted on us :)
It's not for me to offer free advice to people unable to provide the
service they are charging for.

In my experience (rapidly getting less current / relevant) few people
handling auction transactions (or other agency transactions, come to
that) get the VAT right. But it's all explained in the guidance issued
by HMRC.
It would surely be nice if we could occasionally give a
straightforward answer to a straightforward question .

If we can't then we surely might as well "guess", It moves things
along for the OP and this is Usenet :)

If the OP were to attempt the double-entry, I'd chip in with a few
"guesses" and you could put us straight when we mess up :)
 

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