Help with double entry accounting

Discussion in 'UK Accountancy' started by Jeff Williams, Jul 10, 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.

    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.
     
    Jeff Williams, Jul 10, 2007
    #1
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  2. 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.
    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.
     
    Troy Steadman, Jul 11, 2007
    #2
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  3. Jeff Williams

    Nogood Boyo Guest

    that doesn't usually stop you guessing
    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.
     
    Nogood Boyo, Jul 12, 2007
    #3
  4. Keith has gone from this group so your welshness is wasted on us :)
    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 :)
     
    Troy Steadman, Jul 12, 2007
    #4
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