Im trying to prepare an income and expenditure account with the following details:
Receipts:
Rent 8520 Bank Interest 125
Payments
wages 950 Water 3150 rent 3700 Repairs 720 JCB Hire 310 Stationary 75 Purchase of trailer 900 Prize 100 Insurance 300 Show prize 75
outstanding rent from tenant is 650, accruals for rent and water are 950 and 400 and the insurance is pre-paid 30.
Am i right in thinking from the above i take out JCB Hire, Purchase of trailer and both prizes, i add on the 650 to rent rec'd, add on 950 and 400 to rent and water and then take off 30 for the insurance.
What kind of rental income is this? Commercial or residential? There seems to be some strange expenditure associated to it. On residentail lets the income is calculated to year to 5th April and you would indeed accrue for unpaid rent to that day (strictly on a daily basis). Hard to know what you would or wouldn't include without knowing what the expenditure specifically was for. Certainly if it is a residential rent then they cannot claim expenses to make the propert habitable (thinking about the jcb here) but can claim for renewals etc. Bit of a puzzle!
From The Reciepts and Payments Account prepare an Income and Expenditure.
Rental Income 8520 + 650 9170
Bank Interest 125
____ 9295
Expenses ________
Wages 950
Water 3150 + 400 3550
Rent 3700 + 950 4650
Repairs 720
Jcb Hire 310
Stationery 75
Prize 100
Insurance 300 - 30 270
Show Prize 75
________
10700
Deficit of Income over Expenditure (1405)
The Jcb Hire is equipment hire same as plant hire and is an expense. The Purchase of the trailer is A fixed Asset Purchase although it being a small amount.
That is a start anyway Hope it helps in some way.
-- Edited by Davey on Tuesday 27th of April 2010 06:22:32 PM
