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


Joined
Oct 8, 2020
Messages
5
Reaction score
0
Country
United Kingdom
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
 
Ad

Advertisements

Fidget

VIP Member
Joined
Jan 6, 2013
Messages
702
Reaction score
121
Country
United Kingdom
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.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top