I'm renting a shoplot under old company, and make a new tenancy agreement under current company. How do I transfer the deposit in bookkeeping? The cash is with landlord

Hi Ohana. I can share a few steps to record the fund transfer between companies.

Since both accounts are not in the same company files, these transactions have to be recorded as an expense or cheque from one company and deposited by the other company. This may increase a liability account and create an asset in the other company rather than simply increasing and decreasing equity.

Here's how to transfer funds from the old to the new company:

1. Select + New.
2. Under Suppliers, select either Cheque or Expense.
3. Select the bank account the funds are coming from.
4. Enter the Payee, Payment Date, and Payment Method (optional).
5. Under Category details, in the Category column, select an Asset or an Equity account to reflect the funds going out of the business.
6. Enter the amount to be transferred in the Amount column.
7. Select Save and close or Save and new.

Doing this will show that the money comes out from the company.

Then the new company will receive the funds from the old company. You can follow these steps:

1. Select + New.
2. Under Other, choose Bank Deposit.
3. Pick the bank account the funds are going to.
4. Enter the Date.
5. In the Add funds to this deposit section, optionally specify who the funds were Received From.
6. From the Account column ▼ drop-down menu, select an Equity or a Liability account to reflect the funds coming into the business.
7. Enter the amount received in the Amount column.
8. Select Save and close or Save and new.

This entry will show that the transfer is recorded as a deposit into the new company.

On the other hand, I still encourage you to seek accountant's help or tax authority for professional advice to keep your books accurate.

Additionally, you may want to learn more about mixing business and personal funds. With this, you'll know how to record this kind of transaction moving forward.

Do you have other concerns about QuickBooks in mind? Share it, and I'll be here to help. Take care!

Thanks for the reply. However your suggestions is relevant for an actual money transfer from company A to company B. 

However there is no actual money transfer from my company A to B. Instead there is only a letter saying that the security deposit paid by company A shall be transferred to the tenancy agreement by company B

Hi there,

I appreciate you coming back to the thread and adding some clarification about your concern. I’m here to provide further information about recording bank transfers without actual cash.

You’re right, the steps shared by my colleague above involve money. This method is used when you move funds from one account to another in QuickBooks.

Since your concern involves a letter that serves as a document that guarantees payment, I highly recommend consulting your accountant. They can offer advice and expertise to ensure the transactions are properly recorded. 

You can also add an accountant to review your accounting in the program. They’ll receive an email invitation with instructions on how to connect or a link where they can sign up for QuickBooks Online Accountant. Please know that this is only available to selected QuickBooks Online (QBO) International versions.

You’ll want to read our set of articles that will help you monitor the growth of your business: Help Articles for QuickBooks Online. It contains resources, video tutorials, and tips for managing your account, transactions, and reports.

Fill me in if you need a hand with anyQuickBooks-related stuff. I'll be on the lookout for your response. Take care always.