question regarding accounts
Discussion
I have just updated my books on a partnership that finished a couple of months ago and noticed 3 cheques missing on my bank statement. Anyway, i sent the bank a letter giving the dates, amounts, cheque numbers, sort codes etc and last week they sent me two cheques to cover the amount missing.
I have deposited the cheques in my new sole trader account, that carried on the name of the partnership account but wondered how i should show these in my books, as they are still shown on my old cheque book stubs but obviously not on the statement and are now deposited in a new sole trader account.
Thanks Mick
I have deposited the cheques in my new sole trader account, that carried on the name of the partnership account but wondered how i should show these in my books, as they are still shown on my old cheque book stubs but obviously not on the statement and are now deposited in a new sole trader account.
Thanks Mick
I'm not sure I fully "got" or comprehended the first part but,
you need to create an subaccount so you can post a positive in the old books or you will not be able to reconcile.
Similarly you need to create the same for new books so you have something to log in the new cheques against. (or it will show as profit)
PS I'm not an accountant, apparent eh
Better help may follow, hopefully.
you need to create an subaccount so you can post a positive in the old books or you will not be able to reconcile.
Similarly you need to create the same for new books so you have something to log in the new cheques against. (or it will show as profit)
PS I'm not an accountant, apparent eh
Better help may follow, hopefully.
Have you completed the final set of accounts of the now ceased partnership?
If you have, any umnpaid sales should show in the balance sheet of the partnership as trade debtors.
These items you have recently banked into your own bank account rather than that of the partnership are really nothing to do with you as they are part of the monies owed to the partnership.
Has the partnership been properly dissolved and any left over funds split between the partners in the agreed ratio? Was your partner aware that there was still money due to be received by the partnership?
If you have, any umnpaid sales should show in the balance sheet of the partnership as trade debtors.
These items you have recently banked into your own bank account rather than that of the partnership are really nothing to do with you as they are part of the monies owed to the partnership.
Has the partnership been properly dissolved and any left over funds split between the partners in the agreed ratio? Was your partner aware that there was still money due to be received by the partnership?
HI Eric
The old and new accounts are done through spreadsheets and yes i realise the money is part of the old partnership and have paid my ex partner in cash, just to add, we are still friends and i speak to him most weeks.
I feel, part of the problem is the way the bank dealt with it, i assumed after their investigation, they would write to me, to tell me the outcome and ask how we would like to be paid but all i received was a cheque out of the blue made out in the company name, which is carried on in my name.
Mick
The old and new accounts are done through spreadsheets and yes i realise the money is part of the old partnership and have paid my ex partner in cash, just to add, we are still friends and i speak to him most weeks.
I feel, part of the problem is the way the bank dealt with it, i assumed after their investigation, they would write to me, to tell me the outcome and ask how we would like to be paid but all i received was a cheque out of the blue made out in the company name, which is carried on in my name.
Mick
Edited by moparmick on Friday 23 December 13:15
I presume the original sales invoices that gave rise to this were shown as part of the sales of the old partnership. If that is the case, then the income will have ben declared properly in the partnership accounts and the appropriate taxes paid.
Now that the cash has finally arrived but ended up in your sole trader bank account, I would just offset it against your personal drawings - especially because the amount is relatively small.
If for some reason the original sale had not ben shown in the partnership accounts, then the least incorrect thing would be to show the cash receipt as part iof your sole trader sales.
Now that the cash has finally arrived but ended up in your sole trader bank account, I would just offset it against your personal drawings - especially because the amount is relatively small.
If for some reason the original sale had not ben shown in the partnership accounts, then the least incorrect thing would be to show the cash receipt as part iof your sole trader sales.
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