Question
How to deal with an expense taken off a commission for a long term liability?
In my business we buy our book of business from the corporation I work for on a 10 year loan. I get paid buy the corporation through commissions. What I need to pay for the loan comes directly out of the commissions I receive. How do I enter the loan payment so that it is still an expense but part of the deposit? And how do I then have it it reduce the amount of the long term liability?
Here is an example: My commissions for the month lets say are 20,000. My loan payment is 2,000. So my deposit is 18,000. My statement for the commission will show 20,000 commissions and the 2000 loan payment as a negative and deposit is 18,000.