i am maintaining the account of educational society which is register under the society act any one solve my problem .
this institute takes fee from the student a forward it to university, university give back the 20 % amount to the society. in the agreement as per the memorendum of the society. the total fee which will society get from the student will be forwarded to university. my question is if the total receipt of the society mean the total fee of the society is 1,2500000/- this amount forward to university and 20 % of this amount is refund to the society as the commission which type of account enry should i make?
in my point of view my entry should be like this :
on the receiving of the fee :
Dr. Cash/Bank
Cr. To Fee Received
On the given back to university the above fee :
Dr. Fee Paid
Cr. To cash/ Bank
( For Fee Given to University )
On the receiving of the commission :
Dr. Cash/Bank
Cr. To Commission
Kindly let me know amn i right ?
CAclubindia
