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Post Info TOPIC: Fixed Assets!
woodycatherine


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Fixed Assets!
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Morning Everyone!

Looking for some advice on profit & loss and balance sheet entries please?

I have a self employed client who has bought a van for work use. He has borrowed the funds from a relative and is paying it back at £100 per week.

I've worked out the depreciation and know that he claim AIA on his self assessment return for the full value in this year.

Would i show the loan repayments on the profit & loss? and the remaining loan less the repayments on the balance sheet as a long term liability?

Many thanks in advance for any advice

 

 



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C S Wood
VinceH


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"Would i show the loan repayments on the profit & loss?"

No.

"and the remaining loan less the repayments on the balance sheet as a long term liability?"

Yes.

The transactions you should be considering for the loan repayments are simply to credit the bank account (or other repayment source) and debit loan account. That shows the money coming from the source of funds, and going into the loan account to reduce it.



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Vince M Hudd - Soft Rock Software

(I only came here looking for fellow apiarists...)
woodycatherine


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Thank you Vince!

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C S Wood
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