Split payment not balancing
Sharon Drew
Member Posts: 3 Novice Member 
Accounts Plus 2015. We have "trust account" bank account and "funds held in trust" current liability which should balance each other out. Payment from funds held in trust to either third party creditor or to our general bank account is splitting off GST component - the trust account register shows the entire debit (say, $11,000) but the funds held in trust register only the GST-exclusive component ($10,000) so the two do not balance.
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You are probably using the 'cheque' function to transfer monies from the Trust 'bank' account to the 'funds held in trust' which means that will ask for a Tax code (NCG?); either change the Tax code to nothing or better yet use the 'Transfer Funds' function to transfer from the bank account to the current liability account0
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However by transferring to the 'other current liability' account you will see that it shows a minus figure' I always have a problem with this as far as balance sheets go. I find the best solution is to make the 'Funds held in Trust' account a bank account. As I understand it, that's what it should be anyway, an actual bank (Trust) account.1
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Thanks Charles - Reckon's "Help" says specifically to have a Trust Account as bank account and Funds Held In Trust as a current liability account, as the monies held in trust are not assets of my company. I have changed the tax codes as you suggested - many thanks for your tip.0
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Sharon
This all boils down to which entity has to declare the GST debt/credits. If this is a sideline trust handling matter, I'd imagine that the figures in both accounts need to be nett of GST
Gary0
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