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• # 115803
• Wed 18 Oct 2017 06:04 PM

HI

I have a client whose business has changed from a partnership to a limited company. The new company has a new bank account and in the transition period monies that should have been paid into the company bank account have still been paid into the partnership account and vise versa, as well as funds being transferred between the two accounts as cashflow is always very tight! Now in order to carry out the bank recs for both how would you suggest this is carried out, so that the accountant can clearly see what has gone on when he does the final accounts for the partnership?

Thanks!

Dawn

• Dawn

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• # 115810
• Thu 19 Oct 2017 10:09 AM

Hi Dawn

You could set up nominal codes to enter the transactions that dont correspond to the bank account, for example on the Company accounts you could have a nominal code for 'partnership transactions' & enter the appropriate transactions there.  You would then need a corresponding code or dummy bank account in the Partnership accounts to enter the transactions & these corresponding codes should always have the same balance, one debit, one credit

I hope this makes sense

Lisa

• Lisa Phipps FICB

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• # 115811
• Thu 19 Oct 2017 05:22 PM

Thanks Lisa

• Dawn

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