I have a new client who has asked me to complete their Corporation Tax Return. Following a request to previous account they have sent over to me the tangible assets data from previous years but as far as I can see they have never deprecated this tangible asset (company van and trailer).
The van and trailer were bought for £31k four years ago and were recorded in last year’s balance sheet as £31k, they were deposited of in this financial year for £16k. I plan to compete the following entries but have you any other suggestions of how I can account for this as a £15k expense in the P&L will mean that this company will not make a profit in this financial year.
Dr Bank £16k
Cr FA Vehicle disposals £16k
Dr Expenses deprecation £15k
Cr FA deprecation disposals £15k
Thank you for your help in advance.