Correct posting help.

[quill pen]

A deposit for rent is held by my landlord on a business property which attracts interest. I, as a Ltd company, receive a statement once a year showing that interest has been applied to the deposit. As an example say the interest is £100.00.
£80.00 being net interest and £20.00 is income tax deducted (the statement does read income tax). I receive no actual money the £80.00 increases my deposit and presumably the £20.00 is sent to the Government. How do I record these transactions in Sage please?

Quill Pen

[brucedenney]

I think the £20 should not be deducted, there is some sort of form you can fill in to get paid without tax, you would need to speak to a tax advisor on that matter, perhaps you can reclaim the tax?

As far as Sage is concerned you should have an account in the balance sheet where you posted the deposit, with standard nominal coding I would expect it to be 11xx. I would have labelled it "premises deposit" or some such.
You should have an account in the P&L for interest either a sales account 49xx (or you might off set it against your bank interest charges 79xx)

To enter it in Sage you can enter a journal Debiting 11xx and crediting 49xx for £80

If you had a tax paid account in the BS then you could record it as DR 11xx £80, DR TaxPaid Acct £20, CR 49xx £100