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Detailed Help will be much appreciated

ereidereid Feels At HomeRegistered Posts: 28
Please can someone help with the following question:-

Asset purchased 01/03/2005 £29,000.00 on Lease Purchase Agreement over 4 years

Asset sold 31/08/2008 for £10,895.89, this figure is made up of £5,495.36 settlement balance and £58.75 document fee. Giving a profit/proceeds figure of £5,400.53.

Accumulated depreciation as at 31/03/08 is £19824.22

What my query is, what entries are made to calculate profit/loss on disposal?

There is an opening balance on the ‘HP’ type account of £6700.88 as at 01/04/08 b/f and I cannot get this to balance off either at the moment.

Hope you can help please


  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Can you ask the lease company for the amount of interest that was in the final figure?
  • ereidereid Feels At Home Registered Posts: 28
    The £5554.11 it now appears was the balance less £58.75 fee,

    many apologies to you all for any work done on the other information.

    Also there were 3 payments made before the settlement of the HP account.

    thanks so much
  • anniemanniem Experienced Mentor Pewsey, WiltshireRegistered Posts: 1,326
    Hi, to help, please can you tell me what the monthly repayments were and how many monthly payments were due in total, per the original agreement?
    FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire
  • Anne BoleynAnne Boleyn Well-Known Registered Posts: 196


    As previous posters we need a little more information. Working the HP a/c through as per normal gives me an opening bal on 1/4/08 of £10926.98. When did the repayments start?
  • PGMPGM Font Of All Knowledge Registered Posts: 1,954
  • ereidereid Feels At Home Registered Posts: 28
    More Information

    As at 31/03/08 the opening balance from previous accountants was £14041.00
    on the HP a/c
    The monthly payments were £693.06 from 29/06/05 but were originally £686.92 in March 2005. The agreement was extended by 6 months or so for financial reasons.

    The asset was purchased on 01/03/2005

    Hope this helps
    Many thanks
  • Anne BoleynAnne Boleyn Well-Known Registered Posts: 196

    Do you have a copy of the HP agreement?

    I've tried to put the HP a/c together but it doesn't fit with the information you've provided so far. What I would need is

    Over how many months was this due to be repaid
    Monthly repayment figure
    When did repayments begin
    Total interest figure
    Any other one off charges and when they applied ie beginning or end of term
    Has your client paid every month

    Quite happy to help but need the above.
  • ereidereid Feels At Home Registered Posts: 28
    HP details

    Hi Ann

    thanks for sticking with me so far - details are -

    All payments met on time

    Repayment details were

    1st payment of £2060.76 21/03/05
    2nd £ 696.92 ? cannot see this payment !
    3rd £5831.45 (vat Of £5075.00) 31/05/05 paid
    45 mths £ 686.92 (AMENDED TO £693.06 FOR 45 MTHS AND possibly another
    6 months but not quite sure ?)

    Charges £200 at the beginning and £58.75 at the end.
  • Anne BoleynAnne Boleyn Well-Known Registered Posts: 196

    Hi Elaine

    I've run this many times with a few assumptions still and can't agree with the figures given. I've still got a couple of clients tax returns to file so must get on with those. I'm still happy to help but maybe tomorrow.
  • ereidereid Feels At Home Registered Posts: 28

    Hi Ann

    Many thanks, doing same tonight!

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