I have a separate bank account where I hold tenants RETURNABLE rent deposits and interest from the bank on that account.
Previous deposits have been transferred in from the current account and just tagged as a transfer between accounts.
A new deposit has been taken straight into the deposits bank account and I don’t know how to tag it ?
It seems like i’m going to end up deposits dealt with in 2 ways.
How should I deal with the new untagged deposit please ?
You’d just tag the transaction on the rent deposit account in the same way you would normally tag the money in on your current account where the tenant paid you the deposit (and which you subsequently transfer out to the deposits account). How are you normally accounting for the deposits when you receive them?
I have simply transferred them to the deposit bank account and tagged as a transfer between bank accounts - I suppose now you ask, no accounting entry on any of them, just bank account transfers 
What do I need to do to all ao them please ?
What I’m trying to get at is that this money you normally transfer from your current account into your rent deposits account must have previously come into your current account from somewhere else (from the tenant, presumably) - how do you tag that incoming money normally?
Yes, came from tenant. I’m no accountant, and I took the view its their money not mine and no ‘accounting’ entries necessary, so I moved the money into a deposit account and tagged it as a transfer between bank accounts. I’m guessing this is wrong ? What do I need to do now please ? The Deposit account is set up in quickfile.
What you’ve done sounds correct to me. Money comes into your current account from the tenant, you then transfer this into a deposit account held with your bank, you can mirror this on QuickFile.
When the money comes into the current account you just need to make sure it’s tagged to a balance sheet code, not a profit/loss code (which would treat it as income).
You can create a new nominal code under the assets and liabilities header called “Rent Deposits” and tag there.
Disclaimer: I’m not an accountant, so always get a second opinion
Glenn has explained what I was getting at - so in this case instead of tagging the money in to current account against that balance sheet code and then transferring it out to the deposit account, you just tag the money in on the deposit account directly to the same balance sheet code.
Ultimately you end up with the same two things on your balance sheet, an asset (the money you hold in the deposit bank account) and a matching liability (recording the fact that you ultimately owe this money back to the tenant when they move out).
Sorted, thanks - please close
