The company receives cash from services of ultrasonography. The Doctor who provide ultrasonography services to the patient, he/she wants revenue share (*%) from his/her services. First, we booked Cash Dr 100, Income Cr 100 when cash collects from services. Then one journal is made Remuneration of Doctors Dr 10 and A/P Cr 10. End of the month when the payment is made to the respective Doctors; payment journal is A/P Dr. 10, Cash Cr. 10. But there is one problem it overstated income though end of the month it has net off. Is there any other way to treat this revenue share or any good suggestion on it?
Account treatment of revenue share.
Answers
Is it revenue share 90-10 or is it a commission of 10 on income of 100?
Seems to me your customers pay 100 for the service, not 90. I think your income is 100 and the 10 is employee commission.
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Accounting