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.