How to treat Box Office ticket sales?

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A client of mine has created software to sell tickets online. Anyone can create an event and sell the tickets through them. Similar to Eventbrite. He uses Stripe for payments and charges a fee per ticket to his customers. He is acting as box office for other people's events.

How do you treat these sales? Are these sales treated as a turnover for my client? Or would those have to go in balance sheet directly as creditors (sort of client account)? This way only the fees he keeps is his turnover.

Thanks in advance.

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By WhichTyler
22nd Nov 2017 12:26

Check the agreements that he has with his customers and with bookers. I would expect him to be acting as agent not principal so t/o is just his commission, but it depends on the terms...

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