Hospitality
AV Equipment Hire (Outsourced)
Recording the revenue and cost when the hotel hires AV equipment from a 3rd party for a guest.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| City Ledger (Receivable) | Asset (+) | 500.00 | - |
| MICE Revenue: AV Hire | Revenue (+) | - | 500.00 |
| Cost of Sales: AV Vendor | Expense (+) | 400.00 | - |
| Accounts Payable: AV Vendor | Liability (+) | - | 400.00 |
💡 Accountant's Note
The hotel acts as a principal here, marking up the service. Gross revenue and gross cost must be shown to track the margin on third-party services.
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