Posings for pre-trading expenses in Limited Co....

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
I have a company who closed down and re-opened under a new name on 1st December. Unfortunately they used the new bank account prior to 1st December(for the old company)and I am not sure how to make the posings for cheques that cleared after 1st December, but were not relevant to the new company.

Any ideas please?!

Edwina

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Posings for pre-trading expenses in Limited Co....

    You don't say what your role is for this client. Speaking as a bookkeeper using accounting software, I would open a separate account in the nominal ledger eg "Other Debtor - Old Company" and post all the relevant cheques to that account.
    CR Bank - DR Other Debtor
    If you're also working for the old company, do the opposite with that company, Then you should be able to reconcile the balances of "Other Debtor - Old Company" with "Other Creditor - New Company".
    Assuming all the money in the new bank account "belongs" to the new company, will the old company reimburse the new company? If so the intercompany nominal accounts will revert to nil balance when/if the payment is received in the new bank account.

    Sheelagh
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Posings for pre-trading expenses in Limited Co....

    Thanks Sheelagh :D

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