The cash balance and other assets, representing service charge monies received by the company in accordance with the terms of the lease agreement, are held in statutory trust under section 42 of the Landlord and Tenants Act 1987. The residential management company acts as a trustee in this capacity.
The closing balance of cash and other assets held in trust by the residential management company total £348 (2022 - £348). These are not assets of the management company and there are therefore not recognised in the balance sheet.