Help needed re depreciation please!

moz009
moz009 Registered Posts: 6 New contributor 🐸
in General discussion
I am trying to find anyone that can help me!

I have a friend who set up a business last year as a Sole Trader. Due to personal circumstances the business has now stopped trading. I am in my Technician year of AAT and am giving them some help with the accounts (or at least trying to!)

As it all happened within the same accounting and tax year, how is depreciation worked out? Or is it totally ignored as the business was trading for less than a year?

Any help or ideas would be much appreciated - thanks!

Comments

  • speegs
    speegs Registered Posts: 854 Epic contributor 🐘
    Hi

    Please don;t take my word for this. You may want to run this by Companies House.

    Accounts are usually created on a going concern basis. As this company is no longer a going concern, I think the Fixed Assets need to be written down to scrap value.

    I think this is the case but please check further,

    Speegs

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