• Registered: 05/28/2015
  • Posts: 4

Topic: Service Industry

We are working in Service Industry as consultants. Sometimes we need to collect charges from our client and needs to pay government on their behalf.

I wonder how to record that receipts and payments. Should we can record that receipts through journal ledger? This will makes our balance sheet lengthier as we have around 200 customers?

Please guide.

  • Registered: 05/28/2015
  • Posts: 4

Re: Service Industry

The accounting treatment is recording of liability when we received the payment and then reversal of liability when we payback on client's behalf.

Thanks.