I have two bank accounts for my music management company
Office Account
Clients Account
Now in many instances I transfer from the office account to the suspense account for many reasons, for example:
Office account transfer £100 to the clients account 01/06/2015, I tag this as a transfer between accounts which it is, then the same day 01/06/2015 I pay for £100 for a visa application from our clients account.
Now when I go into the profit and loss account, how do I make it so that this transfer isn’t logged in the suspense account? I understand why it is initially, but I need to get the suspense account down to zero ideally.
Can you please advise how I treat these transactions?
When you do a bank transfer, the net balance on the suspense would be zero.
Assuming you have £100 out on the office account and £100 in on the client, both untagged.
Office Account
CR £100 - Current Account
DR £100 - Suspense
Client Account
DR £100 - Current Account
CR £100 - Suspense
When you link them together the NET suspense balance is still zero. It does however leave the DR and CR on the suspense account after you’ve tagged as a bank transfer.
That’s strange when I tag it as transfer between the account, linked as transfer between accounts. It is still showing up in the Net balance and in the suspense account. Is this right?
Date Description Debit (GBP) Credit (GBP)
30/07/2015
TRANSFER FROM TONE MGMT LTD , 20.00 For DIS Facebook Ads Omerch Add Notes
Transfer from Tone Artists Clients Account All Bands.
– 20.00
30/07/2015
TRANSFER FROM TONE MGMT LTD , 100.00 Add Notes
Transfer from Tone Artists Clients Account All Bands.
– 100.00
30/07/2015
TRANSFER TO TONE MGMT LTD , 20.00 Add Notes
Transfer to Tone Management Office Account.
20.00 –
30/07/2015
TRANSFER TO TONE MGMT LTD , 100.00 Add Notes
Transfer to Tone Management Office Account.
100.00 –
