Turnover or not... | AccountingWEB

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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It should all depend ...


agent or principle?

redman7 |
redman7's picture

Agree with OP

andy.partridge |
andy.partridge's picture

At the point of sale Andy?

George Attazder |
George Attazder's picture