by Rita
(BC)
Management company and funds ear-marked for travel expenses.
Hello, my newest client manages music groups, mostly indie bands.
Occasionally she will go on a short tour or promo trip with them. At the beginning of the trip they will give her several thousand dollars. She deposits the money into her bank account and uses her bank card during the trip to pay for all the expenses of the band and crew.
None of this money is ever hers, and none of the expenses. But the transactions are on her bank statement.
How do I account for this ? I'm thinking perhaps, as the money is deposited into her bank account, DR Bank Acct / CR a special Accts Payable account ? Code all expenses flowing through this special account also, until the balance is zero (or as close to as it gets, with the final balance being either income or expense to my client) ?
Am I even correct in assuming the $$ received are not income? I would think so, based on ''intent".
Thanks for any advice . . .
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