Hello all, I am preparing some rental accounts and there is a management company for this block of flats where the client pays service charges.
I have the accounts for this for the year ended 30.09.2012.
The flat was rented out from 30.11.12 and so I think that the amount of service charges paid contained in the accounts up until the 30.09.12 should be excluded from the rental accounts and the additional amounts paid apportioned from 30.11.12 to the year end.
Also there was rent received a year in advance for the tenancy and I have used this approach with the rent.
I would appreciate feedback to see if I am going about this the right way. Many thanks
I think you are saying that your client (the landlord) is paying a management company to look after his block of flats?? And that he was paying them before the flat was rented?
If thats correct, its possible that the management company do not let him stop and start paying, just because a flat is empty, and so the cost is legitimate? Possibly a blanket charge for the year paid in installments??
Hi Michelle, Yes sorry if it was a bit garbled. This client lived in the flat and then decided to move in with his gf and rent out the flat. The management company is for the block of flats actual service charges etc and there were a set of accounts prepared by their accountants relating to the management expenses up to 30.09.
As he had been living in flat himself, it made me think I should disallow that proportion of costs, but do you think I should have allowed some of those costs?
