There was a query at the seminar regarding income from commission earned. Normally, the difference between the amount collected and amount forwarded to the up-line is the commission. How to recognise the transaction to keep track of revenue of the business?
When payment is collected from customer, the accounting transaction shall be Bank and Payable Control Account. Later on when payment is forwarded to the up-line, the accounting transaction shall be Payable Control Account and Bank.
The accounting transaction to close off the remaining balance in Payable Control Account shall be Payable Control Account and Commission Income.
The ending balances shall be Bank and Commission Income.
Another #1SME1Sistem seminar on “Grow your business by better financial management and accounting for SME” shall be held in early November 2016. Kindly contact us via GNZ website to register your interest and reserve your seat. Watch this space for further details. **