I would be very grateful to hear from anyone offering their comments or  advice on how to deal with the following.

I specialise in Sage accounting software, and About 18 months ago I was recommended to a new client. He wanted to introduce computerised accounting, and as the Book keeper was to retire at the end of their trading period it seemed a good time to make the change. The business XYZ Company was a partnership and one of the partners would be retiring at the year-end. The other partner would carry on as a sole trader.

The partners jointly own the premises, and through their accountant it was agreed the remaining partner, Now a sole trader, trading as XYZ Company, would pay half the rentable value to his ex partner.

My client has now completed the first year as a sole trader. I have seen a copy of the Accounts prepared by his Accountant, who by the way is not into computerised accounting or familiar with Sage.

I was amazed when I read in the Balance sheet that he had recorded as a Fixed Asset the value of the premises, which are jointly owned by my client and his ex-partner. The value of the premises entered was the same amount he recorded in the previous year in the partnership Accounts. This puzzles me, as it does not represent a true value in the balance sheet. In my opinion the XYZ Company does not own any premise and should not be included as an asset in my clients business.  I may be wrong. What do you think?