Residents Association - a Limited Company but with no sales

[IGRA]

Help Please - IGRA is a residents association of six houses that manages a communal water treatment plant ( a Klargester biodisc, a bit like a septic tank) and we have had to create a legal entity (a limited company) to ensure all members pay in to a business bank account to pay for its upkeep and maintenance (electricity, maintenance, pump outs etc).

As a limited company, we obviously have to file accounts and so I am using Quickfile. We don’t make a profit, simply receive financial contributions from each household and then the pay for the running expenses of the treatment plant from the business bank account.

I am just setting up the bank account on Quickfile and would like to know what nominal code I should use to record the payments into the bank account from each resident as these are not sales, more like contributions towards the maintenance costs.

Should I set up a new nominal income code to record these? and if so under what sub category. I do hope someone has had a similar experience or can suggest a way forward to help me.

Many thanks

Paul

[Paul_Courtier]

No. Any income code you create will record as sales. You need a balance sheet nonimal to record payments as an asset.

This type of company really deserves input from an accountant as mistakes can have a huge impact. I’d advise you seek an accountant to run you through what you must do.

[IGRA]

Paul, many thanks for your prompt and helpful reply. I’ll try to find an accountant who can run through how we should proceed and then work out how to enter it into QF.

Paul