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Explain financial accounting for xyz dealing with outsource

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An E-Commerce based company XYZ providing delivery services and order facility to restaurants through its fleet and online food ordering application.

XYZ charging 25% commission on each order value to restaurants. Some customer order through Credit or Debit card facility. XYZ collected cash and card payment against orders on behalf of restaurants and pays restaurants on a monthly basis after deducting its commission.

XYZ outsources the delivery fleet to another company and pays them for each order a specific amount. While outsource fleet company collects the cash from customer and pays XYZ which pays to restaurants on a monthly basis after deducting its commission.

Question 1: Explain financial accounting for XYZ dealing with outsource fleet company?

Reference no: EM132606825

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