MYOB Account Problem?

Question

Hi

I've used MYOB for a number of years for various companies without a problem.

I have just started working for a new company and they have asked me to set up MYOB Business Basics for them.  

They are a company that place students from others countries studying in Australia with Australian families.  

What they do is bill the student for four weeks say for $800, of this amount they will keep $220 and the rest, $580 will go to the family.

How can I set up the accounts so that MYOB won't record the $800 as income?  Their income will only be $220 with the $580 going to the family.   They don't want to pay tax on $800 when only $220 is the income.

I just can't get my head around it.

ANISE · Accepted Answer

Hi,

This is not really an MYOB problem, it is an accounting problem.

Here is my suggested journal entry :-

1-XXXX Bank Account $800 DR
2-XXXX Billetting Liability Account $800 CR
(Receive Money ~ $800 from a student)

2-XXXX Billetting Liability Account $220 DR
4-XXXX Income for Placing Students $220 CR
(Recognise income for placing students)

2-XXXX Billetting Liability Account $580 DR
1-XXXX Bank Account $580 CR
(Spend Money ~ $580 to host family)

Set up the Billetting Liability Account as a credit card account so you are able to post against it in Receive Money & Spend Money.

After you have posted all of those transactions

Billeting Liability Account ~ zero balance
Income for Placing student ~ $220
Bank Account increased by $220.

Hope that helps.

Contact me via the messenger service if you need more brain storming.

helga · Answer

I don't know the feeling. My last two accounts got suspended for no reason, I've appealed and BAM nothing happens which leaves me to make a new account! SUE YAHOO LOL

Trending News

MYOB Account Problem?

2 Answers