interest in client bank account

interest in client bank account

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Hi guys,

I am doing an accounts for a letting agency in sage. There is two sets of bank accounts Client and company's. On the client account, there is an interest into the bank every month. how shall i take in account for this?

As far as i know that nothing else shouldn't be in except for the rent, commission and landlord payments. unless it can or any other way to deal with that so i can reconcile the bank accounts

Thank you 

Replies (3)

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By johngroganjga
11th Feb 2016 11:26

Your clients should have asked the bank to credit interest earned on the client account to the office account.

Your problem is not reconciling the bank accounts, it is that you have office money in client account.

So you instruct the clients to make an immediate transfer from client to office to correct the error.

You introduce the interest into the profit and loss account up to which ever past date you are preparing them to by setting up a debtor. 

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By vishnu3008
11th Feb 2016 11:54

The company year end has passed and not all the month's interest has been transferred, how can i adjust, i have informed the client to transfer the interest as it comes now.

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By johngroganjga
11th Feb 2016 12:44

Yes that is what I assumed.  I did not think you were preparing the accounts in advance of the year end!

I answered the question you are now repeating in my last post, which perhaps you should re-read. It's the last sentence of it.

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