UK Accounting for money held on behalf of others (insurance)

[Fox22]

Hello,

I am just wondering how to account for monies that are held on behalf of others.

For example, monies are received by clients and then transferred to insurance companies on their behalf, the difference between the amount received and the amount to be paid out is then transferred to an income account.

However when preparing the accounts, are these monies classed as liabilities or assets etc? im not to sure of the treatment.

Thanks

 

[Fidget]

I have a similar situation, but don't put the money that's not ours into the ledger. It's in the 'real' bank account, but only the proportion that is due to us goes into the ledger bank/income accounts. The bank rec shows the difference between the ledger bank a/c and actual bank a/c. We have a separate tracker that proves what that difference relates to.