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Property Management Company's Final Accounts

Hello everyone,

I am working on the clients accounts that is a property management company and I have couple of questions because I never dealt with this before.

This is a new company therefore there are no comparatives from the previous year.

They provide me with the final figures, therefore I don't do a bookkeeping just put through journals to produce final accounts.

They use 2 bank accounts. One for the landlords ( Client's Account) where total rents come in, and their Current bank Account. Every month they transfer their commission ( profit) from the Client's Account to Current Account.The rest of the Client's Account they owe back to the landlords.

Their Accounting year ended 31.07.15 so it's a deadline this month to submit them....

Therefore:

Client's Account.

The balance on the Client's account on 31.07.15 was £31455.78 ( as per bank statements) .
Monies owed to landlords (creditors) were £ 26510.59 paid AFTER 31.07.15 out of the Client's Account) leaving them with the profit of £4945.19.

Therefore I recorded this as DR Client's Account £ 31455.78
CR Trade Creditor £ 26510.59
CR Income Sales £4945.19
£4945.19 wasn't actually transferred from the Client's Account to Current Account till later 03.03.16.

Next period ---> 1 month up to August 31st

New balance on the Client's Account on 31.08.15 was £29919.11. , creditors paid in September were £19343.5.

Therefore I recorded this as : Clearing out the creditor from previous year :
DR Trade Creditor £26510.59
CR Client's Account £26510.59

Client's Account DR : 24974.11 (as the profit of £4945.19 still sits there!) to make the balance up to £29919.11 ( as per bank statements)
CR Trade Creditor £19343.5

AND staying with the balance of £ £5630.61 that I recorded as Sundry Creditor for now... There is where I feel stuck. ...What is £5630.61? Should I record this as Income for that month? But this is just for the month, so the figure looks just too high...

The client provides me with this info : Client's Account balance £29919.11 ( as per the bank)
less Creditors £19343.5
Balance £10575.61

Those £10575.61 I figured out consists of the profits £ 4945.19 and £5630.61 that I recorded as Sundry Creditor for now.

Any advice? I need your help pleaseee!!!

Many Thanks in advance,

Answers

  • BellaBBellaB Registered Posts: 2
    edited April 2016
    I have now posted profit of £4945.19 as a Debtor (-4945.19) Accrued Income , I think it looks better on BS....
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