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Samilou67


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Assetts - opening balance
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Hi I have a sole trader who bought some equipment for the business in the previous tax year 15-16. 

I have just taken over from another bookkeeper and want to enter the asset in Sage but not sure which nominal to use so that it doesn't affect this years accounts. It would have been paid for at the time.

So dr office equipment cr ?

Sorry if this is a bit vague 

Thanks

Sam



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Sam
Cheshire


Master Book-keeper

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Hi Sam
You need a closing Trial Balance - have you got this? Without it how can you know whether the item was capitalised or not. NB dont forget you cannot re-write history (or at least not without some final accounts/tax/cap allowances re-works)

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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
Samilou67


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Hi Jo, no I don't that's the problem I do know that the previous bookkeeper shows it on the tax computation for capital allowance.

Should I just leave it off as it isn't a vast amount and I have tried to explain to the elderly client that I need the detail but to no avail. Forgot to say that ?I can't trace payment through his bank account so I assumed he had bought it personally.

Thanks

Sam



-- Edited by Samilou67 on Wednesday 6th of December 2017 03:30:25 PM

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Sam
Cheshire


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I cannot say whether you leave it off or include it. You need to go for professional clearance. Get your clients (written) authorisation and send a copy with the clearance letter to the previous bookkeeper and ask for EVERYTHING you will need - send a list. If you do not get the information threaten to report them to their prof body.

At the same time re-approach your client saying that you need copies of his last accounts, last tax return and the last tax computation (which he should have) and maybe even the year before for good measure. Tell him (now) that without that information by x date that you cannot guarantee his/her tax returns etc wll be on time and that penalties (etc - list in full) will apply.

You cannot wrk with thin air and that is what he/she has given you - elderly or not - Im afraid.

__________________

 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
Samilou67


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Thanks Jo

It's very frustrating!

Will email them now and sort it out.

Sam

 



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Sam
Cheshire


Master Book-keeper

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Good luck. I think some folk really believe we are miracle workers.

Only way you should really have issues with teh previous bookkeeper is if your client owes them money (or they have died!)

__________________

 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
Samilou67


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Well that made me chuckle, although perhaps I shouldn't have.

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Sam
Cheshire


Master Book-keeper

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Posts: 8646
Date:
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I almost didnt add it. But Ive seen that before and someone who dies and password protected all their files (and no business partner to 'break the code'!) Oh dear.

__________________

 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
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