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Recharge or talk time seller

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(Querist)
21 June 2013 I want to know how accounting is done for recharge or talk time seller on behalf of a cellular company.I mean who we will manage his accounts. he receive talk time and sell it to retailer and get commission on behalf from cellular company.
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P B Srivathsan

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P B Srivathsan (Expert)
21 June 2013 If the dealer is paying for the minutes when he is buying and is selling to retail mobile phone users, then it is similar to regular sales and purchases.

If it is just a dealership where he gets the right to sell from a stock assigned to him, and he is not paying for the allotment of stock to him, it is in the form of agency and only commission is to be taken to P/L
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