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How to account for Money Received- 2 different situations

ReBroker88ReBroker88 Member Posts: 1

I'm completely new to book-keeping so thank you in advance and sorry if these are stupid questions-

1) If I paid for advertising for my company, and someone paid me for their portion, which I had already paid for, how would you show that?

2) If I receive payment for a project, that's split 50/50 how would I show that in accounting? I've already paid my half and am receiving the other half to pay the item off.

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Comments

  • MikegMikeg Member Posts: 995 ✭✭✭

    ReBroker88
    You would reduce your expenses for anything that you shared with someone else. As you mentioned above with advertising. Debit cash (deposit) Credit advertising. This is because when you paid for it you expensed the whole amount. I think the same would apply in scenario 2, just different accounts.
    Mike G, CPA
    www.mgfinancial.net
    Better Service - Better Pricing

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