Two relatively quick questions (having a mind block)
Ok, assets were purchased at say £10k, (dr assets, cr dir loan to company) - this is the physical amount that was paid.
later, assets have been valued at higher amount for asset register and insurance purposes etc.
how can I show this different and higher 'value' on the balance sheet as it wasn't a bank transaction. and on that note, what is the double entry of the other side?
Other question:
Director put his personal car into company as it is an expensive asset.
Is there anything I need to be aware of or are there any implications with this kind of addition to the company that I need to consider as I will just book it as a loan to the company too otherwise.
Two relatively quick questions (having a mind block)
Ok, assets were purchased at say £10k, (dr assets, cr dir loan to company) - this is the physical amount that was paid.
later, assets have been valued at higher amount for asset register and insurance purposes etc.
how can I show this different and higher 'value' on the balance sheet as it wasn't a bank transaction. and on that note, what is the double entry of the other side?
Dr assets Cr revaluation reserve
Other question:
Director put his personal car into company as it is an expensive asset.
Is there anything I need to be aware of or are there any implications with this kind of addition to the company that I need to consider as I will just book it as a loan to the company too otherwise.
Areas to consider
1. Related party disclosures
2. Car and Fuel benefit if director still going to have personal use.
3. Valuation of transfer to be "arms length"
thanks lovely people!
xx
-- Edited by MarkS on Thursday 21st of August 2014 10:25:15 PM
Thanks Mark - sorry for the late reply - I have been away.
I think the car and fuel benefit is most poignant in this situation as everything else is in check re arms length transfer value and related party disclosures (as far as I understand). The determining of the benefit is where an issue may arise as I don't think I am going to get a straight answer regarding usage if it attracts any kind of taxation...oh well.
Again, thank you.
