Accounting entries question on CIS

Accounting entries question on CIS

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I have a question with regards to recoding CIS in QuickBooks.  

The client takes 50% commission on labour and the client doesn't make any money on parts used on the job.

Labour £100 + £20 (VAT)  = £120

Parts £10+ £2 (VAT)= £12 ( Subcontractor paid by himself)

Total £132

Now, when the client receives the subbbie’s  invoice (Not VAT registered)  for this job

Labour  £50 less CIS 20% (£10)= £40

Parts   £10

Total £50

The client receive all the money from the customer:

50 % is their commission
50% pays labour and CIS.
 
What are the accounting entries?

Replies (4)

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Scalloway Castle
By scalloway
29th Oct 2013 14:39

Try this

1. Issue sales invoice for £132

2. Record purchase invoice for £60

3. Pay £50

4. Purchase Credit note for £10 to CIS code

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By User deleted
29th Oct 2013 14:47

Agree ...

... once I got my head around what you were saying.

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By ShirleyM
29th Oct 2013 15:08

Isn't this the same question as this one?

https://www.accountingweb.co.uk/anyanswers/question/ciscommission-entries

Please ignore - this was the first post, and I responded to the second.

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By SE_Confused
30th Oct 2013 10:56

Thanks Shirley
all sorted now

Thanks Shirley

all sorted now

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