AccountingBLOCK - Tax and Accounting Forums

I'm new to the site, and new to accounting so forgive me if I say or ask some dumb things. I currently work for a Real Estate Company and my boss splits his commissions 50/50 with the company. 10% of everything he earns goes towards a charity fund which he disperses to various organizations at the end of the year. My question is would I record what is accrued for the charity fund as a liability? It is currently just being recorded as income in the bank account but I know it needs to be separted from the normal bank account. Right now we just keep track of it on an excel spreadsheet. Any help or point in the right direction would be great! Thanks.

More on the lines of Accounts Payable. I think you should consider the charity a "vendor" for accounting purposes because there is a set amount for it, in your case 10%.

Most people have two bank accounts, one for normal business operations and other for taxes. You might want to create another one and put the money aside for the charity in that account and avoid mixing it.

__________________
Zahid H. Lilani
Tax Accountant,
eZeeTAX, Inc.
http://ezeetax.com