We receive money from clients and use part of that money to pay ticket issue agencies on behalf of the client. The rest of the money becomes our markup(profit). How do I properly record this:
- create an expense account called “money paid out to ticket issuing agency” and record the full amount received and post the amount paid out to the ticket issuing agency to the expense account.
- create a liability account called “ticket issuing agency” and receive the money into it using two line item entry.
Am a bit confused here?