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Moonraker


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Splitting accounts
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Hi All,

My client's has a main retail business (Ltd company) and has now gone into selling franchises for this for which a seperate Ltd company has been set up. The main company accounts currently show all the income and costs relating to the franchise business in the Balance Sheet under current assets (set up under code 1150 on Sage). The client now wants these income and expense figures split out from the main company accounts and shown in a seperate set of accounts  for the franchise business.   I have given it some thought myself and the way to do it as far as I can see is to categorise all the entries under code 1150 on the main company's balance sheet and then enter them under the correct code in the P&L account and Balance Sheet in the franchise business accounts with the  other side of the double entry being shown on Balance sheet for the franchise business under current liabilities (say also under code 1150)  - the total value of  which should  mirror the amount shown under code 1150 in the main company's accounts as current assets.  As I have never come across this before any advice anyone can give as to whether my approach is correct or if not what I should do would be much appreciated.

 

Many Thanks

 

 

Richard



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RobRJBS


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Hi Richard

Your thinking is correct. All you need to ensure is that code 1150 agrees between each business and rename it to inter company loan.

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Rob Director R & J Business Solutions (www.rjbusinesssolutions.co.uk) @RobRJBS
Moonraker


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Hi Rob,

Many thanks for your response, nice to know I was on the right track!

 

Richard

 

 



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Moonraker


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Hi All,

 

Further to my original post on this subject on 27th Jan (see above), I also need to transfer one of the bank accounts currently showing in the main company accounts to the Franchise business accounts. My thoughts on how to do this are as follows -

On the main accounts enter a journal crediting the bank account concerned to the value of the current balance with the corresponding debit entry being posted to code 1150 on the main accounts Balance Sheet.

On the franchise business accounts enter a journal debiting the bank balance value to the bank account concerned with the corresponding credit entry being posted to code 1150 on the Balance Sheet for the Franchise business.

I hope this makes sense!

Are my thoughts correct?

Any advice gratefully received.

 

Many Thanks

 

Richard 

  



-- Edited by Moonraker on Wednesday 8th of February 2012 02:47:47 PM

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