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Post Info TOPIC: How to treat sale of window cleaning round
morgwick


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How to treat sale of window cleaning round
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Hi everyone.

I have a client who is a window cleaner. He used to do his own books and only did an income and expenses summary for the tax return.

He has just sold a window round for £600. Should I just treat this as £600 income. He has no record of goodwill etc.

Thanks



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Gill
gbm


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I would have said it was goodwill.



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morgwick


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Thanks Nick,

How would I treat this in his accounts then?

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Gill
morgwick


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Hi,
Would anyone be able to advise how best to treat this transaction?

Normally, if there was a balance sheet, and the client sold an asset or goodwill, i would do the following:

Dr Cash/Bank with £600 (proceeds of sale)
Cr P&L Loss or Profit on sale of FA £600

Dr P&L with original cost
Cr Fixed Asset Cost b/f with original cost
Dr Depreciation b/f
Cr P&L Loss on Profit on sale of FA

However as no goodwill recorded not sure whether I should place the whole £600 as taxable income.

Thanks

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Gill
davido


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Did you get an answer to this?



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