How to Receipt Returned Bond Funds

This article outlines the steps to correctly receipt bond funds that were originally receipted into the trust account, transferred to an owner or supplier to hold, and have now been returned to the trust account. It also covers how to handle scenarios where the returned funds include interest earned from an interest-bearing deposit account.

Scenario 1: Standard Bond Return - No Interest

Step-by-Step Instructions

1. Receipt the Returned Bond Funds

1. Navigate to: Accounts Receivable > Receipt
2. Select the relevant Sub Ledger.
3. Complete the following fields:
   • Payment Type
   • Direct Deposit Name
   • Receipt Date
   • @Bank
4. Enter the Amount of the bond being returned.
5. Click Add Credit / Sundry Receipts.
6. In the sundry receipt section:
   • Enter Account Code: 1530 - Tenant Bond
   • Enter a Description (e.g. Returned bond funds)
   • Tick the Sundry Receipt checkbox
   • Enter the Amount
   • Click Process Receipt

Scenario 2: Bond Funds Returned with Interest

If the returned bond funds include interest earned from an interest-bearing deposit account, follow these steps:

Steps to Receipt Both Bond and Interest Amounts

1. Navigate to: Accounts Receivable > Receipt
2. Select the relevant Sub Ledger.
3. Complete the following fields:
   • Payment Type
   • Direct Deposit Name
   • Receipt Date
   • @Bank
4. Enter the Total Amount received (bond + interest).
5. Click Add Credit / Sundry Receipts.
6. In the sundry receipt section, enter two separate lines:
   • Line 1 – Original Bond Amount
     • Account Code: 1530 - Tenant Bond
     • Description: Returned bond funds
     • Tick the Sundry Receipt checkbox
     • Amount: Enter the original bond amount
   • Line 2 – Interest Portion
     • Account Code: 1530 - Tenant Bond
     • Description: Interest earned on bond
     • Do not tick the Sundry Receipt checkbox
     • Amount: Enter the interest portion
7. Click Process Receipt

Why This Is Important

• The original bond amount was previously reflected as an Accounts Receivable credit on the sub ledger.
• By not ticking the Sundry Receipt checkbox for the interest portion, you are increasing the Accounts Receivable credit amount on the sub ledger only by the interest gained.
• This ensures the sub ledger reflects the correct total bond held as a credit, including both the original bond and the interest earned.