Example of Receipting Trust funds received before the appointment date

There are two approaches that can be used to record transfers from the practice trust account to the job account when there are receipts like a directors contribution, received before the appointment date which subsequently need to be transferred to a job's bank account following appointment.

Method A

1. Receive trust funds
(Do not select a Job to record the initial receipt)



Account coding:

2. Transfer funds to the Job

a. Record a Payment out of the trust account reversing the initial entry

This reverses the original trust receipts.

b. Record a receipt in the Job bank account 

Note

Record the entries within the 5602 period.

Method B

Alternatively you can :

a. record the receipt in the trust account linked to the job and coded to director's contribution (or other relevant account)
b. then record a payment in the trust account linked to the job and coded to cash at bank.

Note

The reporting of the transactions for receipts and payments – in particular, the Form 5603 you will notice that if the receipt of the Director’s Contribution to the trust account occurs prior to the appointment date (as is often the case) and recorded accordingly in the Practice Trust Account, and then transferred to the Job Account on or after appointment. In this case the transfer from the Practice Trust Account will not be disclosed in the receipts and payments.

This means that if the dates are causing an issue, then consider Method A but if not then Method B may be more suitable.