Hi, just a quick question that I hope someone out there can help me with please. The company I work for has just knocked through to make 2 offices one. The whole lot has also been repainted. I have just got through 2 invoices one for each job. Which nominal account should I post them too on Sage Line 50? I don't think they should go against Assets ( depreciating), should they just go against Office Bills ? Any thoughts out there? Thank you
-- Edited by Carrie on Wednesday 16th of March 2011 04:25:18 PM
I always find it difficult to decide when property has been simply maintained or improved.
I think in this case I would be inclined to increase the asset as I presume the alteration was to make it a more efficient workspace? therefore it was all capital expenditure.
I would put the painting to repairs and renewals. With the knocking two rooms into one it would depend on whether this would add value to the property or not as to whether to capitalise or stick that in r & r as well.
Ooooo I had forgotten about the repairs n/c, that would make sense on the painting bit. Still not sure about the wall,as you say it enhanced the space, I think I will put it to Assets, I wasn't sure that was right but as both of you came to pretty much the same conclusion then that's the way I will go, thanks for your thoughts :)
I would be tempted to put the cost for knocking the wall through as capital expenditure. The work involved has physically changed the property, whether or not value has been added or reduced.
I would also be inclined to apportion the cost of the repainting and decorating due to the fact that it was carried out because of knocking the wall through.
