recording payments between 2 sets of books

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SuzyA
SuzyA Member Posts: 14 ✭✭
edited July 2020 in Accounts Hosted
How do I correctly record a payment between 2 sets of books?
We have opened a new company, and another set of books for it, transferring all of our customers to the new bank account, company name, and new books. 
My problem is that some customers have continued to pay into the old bank account and the old set of books. In order to reconcile this correctly I need to record the payment they have made, which has no invoice available for it, transfer the money between the bank accounts (which is the easy part) and record the payment out of the old set of books, and received in the new set of books. There is no account "linking" the 2 sets of books, so a simple bank transfer will not do. 
What is the best way to go about this please?  

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  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited July 2020
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    Hi SuzyA.  This is the way that I would tackle it.  In the old set of books, put the value (credit it) to a Liability Suspense Account as the amount you received does not belong in that set of books.  Then transfer the amount to the new bank account and there you just treat the receipt in your new bank as an EFT from your customer.

    John L G

  • SuzyA
    SuzyA Member Posts: 14 ✭✭
    edited September 2017
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    Thanks John, does that just leave the amount in suspense for the accountant to sort out at end of year?
  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited September 2017
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    No, when you record the cheque transfer out of your old set of books, you will code it to that same Suspense Account, thereby clearing the entry.

    John L G

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