I'm an office manager at a law firm and this year we have started to receive settlements when a percentage belongs to the firm and the balance goes to the client. I am having issues allocating the funds. For example, let's say we receive a settlement in the amount of $100,000 for "ABC client" and the funds have been deposited into a bank account which we set up called "ABC Bank Account". The split for this client would be (65/35). How do enter receiving the initial settlement payment? Then when I wire the client's percentage how do I record the payment. Finally, when I move our portion from "ABC Bank Account" to "Operating Account" how do I record our portion to show it as income?
Sorry I know it's a lot.