B & Bs
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Hello
I don't know whether my brain has just given up or if I am going daft.
My client has a B & B. The accounts for the previous period were done by someone else. In that period which was from start to cessation the B&B is not shown in the fixed assets, just the profits from the sale of the business are shown in the capital account.
My client then bought the B& B next door but 3! This is the period that I am currently working on. I have the purchase price and although my client lives at the B&B am I right that this is a fixed asset and should be in the balance sheet, or am I loosing the will to live. I do know that the property has not depreciated!
Charlotte
I don't know whether my brain has just given up or if I am going daft.
My client has a B & B. The accounts for the previous period were done by someone else. In that period which was from start to cessation the B&B is not shown in the fixed assets, just the profits from the sale of the business are shown in the capital account.
My client then bought the B& B next door but 3! This is the period that I am currently working on. I have the purchase price and although my client lives at the B&B am I right that this is a fixed asset and should be in the balance sheet, or am I loosing the will to live. I do know that the property has not depreciated!
Charlotte
0
Comments
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Re:B & Bs
Depends..
If your client is a sole-trader then the accountant may not have bothered with putting it on the balance sheet given that it has no tax consequences.
Also, if the property was purchased as a home and then became a B&B then that may also explain why it was excluded.
If I were you I would just start off afresh with the new purchase.0 -
Re:B & Bs
Hello Dean
Thank you for your help.
I have included the B & B as a fixed asset at the purchase price. I have deducted a percentage of the expenses for private use in the P&L.
Charlotte
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