Property Accounting

Property Accounting

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I have a client who buys and sells property and occassional keeps property for rental. Over the past financial year there has been an increase in the value of some of the property and this increase in value has been used to remortgage property to release equity.

So, I now need to prepare a balance sheet for him and I need to know how to account for the increase in value of the property.For example, a property was purchased two years ago for £190,000 and was valued at £245,000 for remortage purposes, so how do I account for the difference in value of £55,000? The remortgage value (Capital) is £208,250 an increase in debt of £46,750.

Many thanks for your help...
SAM NICO

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