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Post Info TOPIC: Issuing an Invoice for future payment


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Issuing an Invoice for future payment


I'm new to doing the accounts for a Country Rock Band.  There are very few accounts, and it should be quite simple.  I've just issued an invoice that is due for payment in July 22.  As I'm using double entry, I have credited the Trade Debtors account with the invoice amount because they owe the band, and debited the Band Income account with the same because the Band is owed. Is this correct?   And presumably, when the venue pays the band, I need to debit the Trade Debtors and credit the Band's bank account.  



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If you credit the bank account you're paying money out. Have you actually done double-entry bookkeeping before?

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Emma



Master Book-keeper

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Keelbolt wrote:

I'm new to doing the accounts for a Country Rock Band.  There are very few accounts, and it should be quite simple.  I've just issued an invoice that is due for payment in July 22.  As I'm using double entry, I have credited the Trade Debtors account with the invoice amount because they owe the band, and debited the Band Income account with the same because the Band is owed. Is this correct?   And presumably, when the venue pays the band, I need to debit the Trade Debtors and credit the Band's bank account. 

The transaction should have been cr income dr customer.   This will then show up as a trade debtor on the balance sheet.  When payment is received you cr customer and dr bank.



-- Edited by Leger on Sunday 8th of May 2022 12:10:54 PM

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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.

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