Difficulty in posting office deposit

Hey, I wondered if you may be able to help.

So, we moved into a new office with another company. We are CompanyA, they are CompanyB.

Some details:

1. The total deposit we had to pay was £5000
   2. So the idea was we would pay £2500 each company
   3. So I paid across £2500 to the landlord on behalf of CompanyA
   4. But CompanyB, they paid across their £2500 directly instead of paying CompanyA and we transfer the entire £5000 to landlord

So, the problem I have is that CompanyA has the contract with the landlord. CompanyB is effectively sub-letting from CompanyA.

Therefore in the accounts for CompanyA, I need to show that there is a £5000 deposit on the accounts and that when we move out the Landlord will pay us back £5000.

You see what I mean? And if so, any ideas on how to do this?

Posted by Ben Keogh on Apr 27, 2012 5:30 PM BST

Hi Ben,

So at the end of your lease the landlord will owe you £5,000 and you will owe CompanyB £2,500. Is that correct?

Regards,

Posted by Mark McLaren (Solar Accounts) on Apr 29, 2012 9:52 AM BST