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Revenue and expense recognition for on-line ticketing company


We are on-line ticketing service company using our own payment gateway.  Back end system shows daily tickets sold for various shows from different merchant clients.  Daily we receive bank payment matched with back end totals net of credit card commission.  At the end of every event or shows, we are entitled to get commission based on total ticket sold, some % and others fixed.  We then need to pay back our merchant client with the amount collected from bank net of all deductions such as company commission income, credit card charges and tax paid.  How is the best way to book related entries upon selling tickets, collecting payments from bank and remittance of net amount to merchant client?

asked Aug 21 in General IFRS Discussion by anonymous

1 Answer

0 votes
Record a part of your commission income to p&L under income account and remaining fund received including credit card commission everything under liability and reimburse the Liability to your merchant

Ex

Bank credit of a ticket    Dr   100
Income account                 cr              15
Liability merchant             cr              85

Liability merchant             Dr   85
Bank payment                    cr              85
answered Aug 22 by V


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