Turnover or not...
Just been to see a potential client where they sell art.
They sell the art on behalf of an artist and collect commission for example 50% and then pay the other 50% to said artist - in their books they have income as say 10K and cost of sale as 5K, but surely this is incorrect and should only be turnover of 5K. I guess what they are sort of doing is overstating turnover which issues arise when they get to audit threshold.
Am I missing something here?
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