I am sorry this is a 'big ask' question, very grateful for any help at all
A van costing 13,000 (not sure of year bought) was sold for 9,500 in April 2013
The balance of the loan for the purchase of the 13,000 vehicle is £7951.71 at 31st March 2013 (end of previous financial year)
I don't know when the van was bought and there are no capital allowance calculations or any record of depreciation (I asked a question about this a few days ago which I have copied and pasted below).
Assuming 100% of the cost of the van was claimed as a capital allowance in the year bought (in reply to my question below).
Can anybody help me with the journals for this please??? I have tried to work this out myself but it makes no sense what so ever so I think I am missing something massive out of my journal
I don't think my clients previous accountant has given me everything he should of (unless I'm being an idiot).
I expected to be sent a full asset register - giving details of what the assets are, when they were bought, how much they originally cost and the depreciation and capital allowances computations, am I wrong in expecting this?
There is plant and machinery and motor vehicles account on the trial balance. I have been given a capital allowances calculation that is just a new vehicle and that annual investment allowance has been claimed for the full amount. BUT no workings for depreciation or capital allowances for the other vehicles that make up the brought forward balance of 13,000 and nothing for plant and machinery either. If it makes any difference the only capital allowances claimed for the previous tax year is the annual investment allowance (he did send me copies of the tax returns). I don't understand why no capital allowances have been claimed for these balances, they can't just stay there in the account
I have attached a copy of the trial balance and capital allowances calculation.
I do tend to struggle with this part of the accounts but there is usually sufficient workings for me to work from and I get someone to check over my workings to double check I have it right but this time I am at a total loss!
If anyone can tell me what I need to do I would be very grateful, I haven't a clue what to do from here.
AND THE ANSWER
The figures in the accounts will probably not be the same as the figures in the capital allowance comp.
It is more than likely that capital allowances have been claimed in full on the assets brought forward in the accounts as the TWDV b/f is £0 and the only CAs claimed is the additions in the year which agrees to the TB. Assume it is a van that was bought or a low CO2 emission car given 100% allowance was claimed.
They should been able to give you a fixed asset register detailing the assets, date of purchase, cost, depn to date and NBV per the accounts. But not all accountants keep a register so dont assume you will get one as if they cant easily produce they would need to go and create one which would take time and cost and not be likely unless your client pays for.
The capital allowance calculation will be a different calculation to the depreciation charge/disposal.
You would use the sale price as a balancing charge for the capital allowances.
For the accounts you would compare the sale price to the balance sheet value and have either a loss on disposal or gain on disposal which will be posted to the P&L.
is this too obvious a question - have you gone back to the previous Accountant and asked for the info. As Mark states they may not have the info easily to hand, but my motto is dont ask, dont get. Do ask, might get! Its worth a call.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
