The Book-keepers Forum (BKF)

Post Info TOPIC: Balancing charge when can't determine sale proceeds


Senior Member

Status: Offline
Posts: 114
Date:
Balancing charge when can't determine sale proceeds
Permalink Closed


I have a situation whereby some assets on which AIA was previously been claimed have been sold but as a package with other assets on which AIA was never claimed. As the sale price was for all the assets as a package I cannot determine the exact sale proceeds for the assets for which AIA was cliaimed and therefore am finding it difficult to determine the balancing charge. I considered assuming the sale price to be the same as the NBV in the accounts thereby giving rise to a nil position i.e. no profit or loss?? Has anyone any other ideas?



__________________


Veteran Member

Status: Offline
Posts: 42
Date:
Permalink Closed

Hi Kitty

My thoughts are...

If the sum of all the assets sold equate to the proceeds, then I'd go with your thought.

If they didn't then I would take the proceeds divided by the total NBV of assets sold

and apportion the proceeds to each asset by this calculation.

I'd also be interested to hear how others would handle this situation.

Hope this helps



__________________
gbm


Guru

Status: Offline
Posts: 896
Date:
Permalink Closed

Just reduce the pool by the proceeds?

__________________

 

Regards,
Nick

Website: www.gbmaccounts.co.uk
Twitter

Factsheet | Starting a Business

 

Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About