First of all my apologies, as this has been explained to me before and I still can't get my head around it.
Cost 1100 depreciation £330 (1.5 years) Estimated value at disposal £250 but given to family member.
My entries are
CR £770 cost bf DR £250 DLA DR £520 expenses depreciation.
That works on VT+ as its the only asset and is now nil, but VT accounts is telling me I can't use cost bf and I have to use cost additions, is this where I've gone wrong or have i totally cocked it up and the entries are wrong?
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Hi John
Journal entries are usually
Credit the fixed asset account with the FULL original cost £1100 and debit disposal account
Debit the accumulated depreciation account with the total accumulated since purchase £330 and credit disposal account
You have 'received' £250 from the Director, debit DLA, credit disposals account
Debit and expenses account in the P&L called 'loss on disposal of fixed asset' £520 and credit disposal account (which is now nil).
Not sure where that will leave you on VT+. Does it help? If not - can you post a piccie or two?
(Im unsure where you are showing the 'bf' in your eg)
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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
That makes more sense, and I've had it explained before, but hadn't saved an example, and couldn't get my head around it when trying to do it this time round. I shall bookmark this page as a reminder.
Mine cleared the entries so it wasn't showing on the balance sheet, but didn't correct the cost - additions or the depreciation b/f.
In answer to your question VT+ has a cost additions and the following year the balance after depreciation shows as cost b/f and it was this that I was crediting (wrongly)
The screenshot is not from this client - (other laptop is on holiday in Doncaster ) but explains what I mean.
Edit: Screenshot added
-- Edited by Leger on Sunday 8th of October 2017 03:18:16 PM
LOL Went down to Doncaster on Thursday to dogsit for 10 days while my mate is sunning it up in the Canary Islands (I passed your town taking them to the airport but didn't think you'd appreciate a 4 am wake up call Friday morning!!!) I've popped back to Ripon today because apparently I'm not allowed to enjoy myself so Mrs R will be keeping me company until next Saturday!!! So I thought well if I can't enjoy myself the laptop can so it's amusing itself for the day. Just hope the house is still in one piece, you know what these laptops are like when the owner's away!!
My work area for the next week is my mates kitchen table, the pressures of an executive lifestyle hey
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Oh John I would like to say that I wouldnt have appreciated a wake up call at 4am on Friday but as it happens I was wide awake, but you wouldnt have wanted me sharing my flu type bugs! Hilarious that Mrs R wont allow you to enjoy yourself!!!!!!!! Wouldve thought she would be glad of some peace and quiet! Get your pal to sort out decent flight times next time he jets off - so bloody inconsiderate!
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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
) but explains what I mean.
