Expense categoy?

You could probably do this in several ways. Here's how I would do it

 

1) when receiving payments on behalf of clients, credit it to an income account, probably using one in the 8-xxxx section to distinguish it from your operational income. It's actually a liability to you at this point, but I'd use an Income account for reporting purpose as below. Have a Job for each client and note that job on the payment

2) when making a disbursement to the client, expense it against a 9-xxxx account, also using the same Job, and at that point adjusting for your fee. It would look like this

     9-xxxx   Disbursements to Clients       1,000

     1-xxxx         Bank Account                                                   900     Job A

     4-xxxx        Fee income for handling client payments     100      Job A

 

You can then use job reporting to ensure that monies are correctly accounted for. All jobs should end with a zero balance

At balance date you will want to adjust for monies held by adjusting any balance held out of the income account to a liability account

 

NOTE - the monies received on behalf of your clients is technically a liabity, I have used Other Income and Other Expenses sections in this example so that Job reporting will work as a check on this. If Asset/Liability accounts are used , job reporting won't show the results.

Thank you sir for the suggestion. A little precise query is how to show this expenditure and amount received including our own commission in the profit and loss account. Should we show it along with our expense and income and later adjust it or we have to make different head including the details?
What head and how?