I'm a total bookkeeping noob. My LLC has an agreement with another LLC where we split income coming from a particular source. As it happens the income comes to my business's bank account and then I send the other company's portion to them.
So let's say income of $1000 comes in.
$500 of this is income for my LLC and $500 is income for the other LLC. How would I record that in terms of bookkeeping? My company did not have income of $1000 and have a $500 expense. My company only made $500. When I run a report I want to see that my business has $500 of income not $1000 with a $500 expense.
But when I import bank transactions there is $1000 inflow and $500 outflow. How do I classify the $1000 inflow and the $500 outflow?