Sale of Private Asset/Incomplete Records.

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
<BR>I have a problem with an exercise in compiling a balance sheet from incomplete records for an exercise. In the information given there was a sale of a private yacht for £20,000 which was deposited into the company bank account. <BR><BR>Does anyone know how to treat this? I originally left this out but obviously now I am £20,000 out. I found this out after listing the opening assets and liabilities to find the opening capital, which had this difference.<BR><BR><BR><BR><BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Sale of Private Asset/Incomplete Records.

    I would say that the journal is dr bank with 20000 and credit either directors loan (if it's a limited company) or capital introduced (for a sole trader) which will make it balance.<BR><BR>Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Sale of Private Asset/Incomplete Records.

    <BR>If I put to introduction of Capital this would increase my closing capital as the transaction happened within the year. It is my opening capital that is £20,000 out?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Sale of Private Asset/Incomplete Records.

    It's difficult to see without knowing the whole question, any chance of either posting or emailing it to me.<BR> <BR>My email address is in the profile.<BR><BR>Annette

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