Tour & travel agent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2016 I am a tour & Travel agent . I take money from clients and book the tickets & package out of the money received I n between i earn my commission.

How would I show my sales in my books. It will be shown as gross sales or only net commission. I book travel packages fpr my clients.
Thanks
in advance

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2016 any help ???

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 Great question! Here’s how you should **record your sales as a Tour & Travel Agent** in your books:

---

### How to Show Sales in Books as a Tour & Travel Agent?

You basically have two components in your transactions:

1. **Amount received from clients (gross amount)**
2. **Your commission earned**

---

### Accounting Treatment:

* **Gross sales**: You should record **only your commission income** as your sales or revenue in your books.
* The **amount you receive from clients to pay airlines, hotels, etc.** is **not your sales**, but rather money collected on behalf of the service providers.

---

### Why?

* You act as an **agent**, not the principal supplier of the entire package or tickets.
* Your income is the **commission earned**, which is your actual revenue.
* The payments made to airlines, hotels, etc., are **pass-through amounts** and should be recorded as **liabilities or payables** until settled with the actual service providers.

---

### Sample Accounting Entries:

| Transaction | Debit | Credit |
| --------------------------------------- | -------------------------- | ---------------------------------------- |
| Client pays Rs. 1,00,000 (Package cost) | Bank/Cash Rs. 1,00,000 | Client Advances Rs. 1,00,000 (liability) |
| Pay airline Rs. 80,000 | Client Advances Rs. 80,000 | Bank Rs. 80,000 |
| Earn commission Rs. 20,000 | Client Advances Rs. 20,000 | Commission Income Rs. 20,000 |

---

### Summary:

* Show **only your commission** as sales/income.
* Do **not** include the full package or ticket cost as your revenue.
* Maintain the amounts collected on behalf of others as **liabilities** until paid.

---

If you want, I can help you prepare a sample ledger or a simple accounting format for this. Would you like that?

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