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Crowdfunding Money Treatment in Accounts

How do we treat money received from crowdfunding in year end accounts?

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My client has raised money through crowdfunding and have received more than hundred thousand pounds. 

He works with a company who are making a product so the 95% of the funding will be sent to that company and he will keep his commission of 5%.

How will i treat that money in year end accounts?

Let me know thanks

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By WhichTyler
03rd Apr 2018 20:27

Depends on the terms of the crowdfunding agreements with the funders and the company he is working with

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By johngroganjga
03rd Apr 2018 20:30

What is it? Shares? Loans? Something else?

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ALISK
By atleastisoundknowledgable...
03rd Apr 2018 22:42

Are you trying to say that your client has acted as the broker in this deal and asking how to account for his 5% commission?

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By Shahood
04th Apr 2018 08:16

He just raised funds for the main company who are making a product.
So let's say if he raised 100,000 he will keep his commission and give rest to main company.

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Replying to Shahood:
By johngroganjga
04th Apr 2018 08:22

So all he has to account for is commission income. The funds raised, less his commission, are a creditor until paid over.

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