Intangible assets CT600

Intangible assets CT600

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10% write of straight line on trademark. 
year 2011 (Value £686) -£74, year 2012 (Value £617) -£69, year 2013 (Value £555) -£62
 
How is the correct way to put in the numbers in Statuary accounts?
Cost      
At 01 Jul 2012: AC114B: 617          
Additions: AC115B: 0        
Disposals: AC116B:          
Revaluations: AC209B:          
Transfers: AC210B:          
At 30 Jun 2013: AC117B:         
               
Amortisation        
At 01 Jul 2012: AC118B:           
Provided during the period: AC119B: 62          
On disposals: AC120B:         
Other adjustments: AC211B:         
At 30 Jun 2013: AC121B: Software calculate
 
Net book value
Software calculate

Replies (17)

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By User deleted
26th Jun 2014 14:16

First things first

Your amortisation is not on a straight line basis.

Actually, first things first should read: get an accountant (as already suggested to you) - why do you think you are entitled to free advice on how to prepare accounts/tax returns when everyone else has to pay?

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Stepurhan
By stepurhan
26th Jun 2014 14:19

A few points

Statutory accounts, not statuary accounts, unless what you are selling is statues. (in the summary on the main page)

This isn't a query. This is a data dump. Even if it was sensibly formatted, which it isn't, you are unlikely to get a sensible answer on the basis of this alone.

You have already been told several times to get an accountant. People aren't saying this just to be mean, you are clearly well out of your depth. You are not doing yourself any favours by continuing to ignore this and ploughing on. You are also not making any friends here by continuing to press for free help on this, especially when it is clear you are unlikely to be able to understand it anyway.

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Replying to stepurhan:
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By sofj
26th Jun 2014 14:56

Thank you for the feedback

I do believe accountants are there for business owners as me. But I am interested in learning a little bit more about this since it could benefit me in business. 

 

Sorry for the misspelling of Statutory accounts.

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RLI
By lionofludesch
26th Jun 2014 14:28

Best Advice

The best answer to the question "How is the correct way to put the numbers in the statuary accounts?" is to take the job to an accountant and stop trying to do your own.

You have some unusual aspects to your accounts and are completely out of your depth.

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By sofj
26th Jun 2014 14:42

thank you

Thank you for your answer.

 

I had help last year from an accountant too. I think I am right that he put the write off for 10% straight line in Amortisation of other intangible assets: for 2011 it was £69. Where do you or someone else suggest it should be put?

 Neither would I ask anyone to prepare my whole ct600 here. But help yes. 

 

I am trying to learn more about accounting. I believe it will benefit me in business and will help accountants.

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Replying to Nichola Ross Martin:
RLI
By lionofludesch
26th Jun 2014 14:39

You think it's right ?

sofj wrote:

I had help last year from an accountant too. I think I am right that he put the write off for 10% straight line in Amortisation of other intangible assets: for 2011 it was £69. Where do you or someone else suggest it should be put?. 

You think it's right ?  Why does it go down every year, then ?

 

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Replying to lionofludesch:
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By sofj
26th Jun 2014 14:46

Trying to figure out what is right

I am trying to understand where it should be put and also why. I want to learn more about this even if I am not an accountant.

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Replying to tom123:
RLI
By lionofludesch
26th Jun 2014 15:19

First things first

sofj wrote:

I am trying to understand where it should be put and also why. I want to learn more about this even if I am not an accountant.

The first thing is to get the numbers right.

Only then do you need to worry to put them.

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Replying to lionofludesch:
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By sofj
26th Jun 2014 15:30

Does it go down because of this?

Amortization occurs when the value of an asset (usually an intangible asset) is reduced over a specific time period, which is usually over the asset's estimated useful life. A good way to think of this is to consider amortization to be the cost as the asset is consumed or used up while generating sales or profits for a company. Intangible assets can include a patent, trademark or trade name, or a copyright. Major inputs into the amortization process include useful life, residual value and the allocation method, the last of which can be on a straight-line basis that is mostly straightforward. http://www.investopedia.com/articles/investing/090213/explaining-amortiz...

Am I thinking wrong about this? 

A bookkeeping course is something I most likely will take in the future because it will help me in running my business.

I accept your advice to have an accountant and if do not want to solve the question asked I accept it.

 

  

 

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Replying to dgilmour51:
RLI
By lionofludesch
26th Jun 2014 17:07

Quite right

sofj wrote:

Amortization occurs when the value of an asset (usually an intangible asset) is reduced over a specific time period, which is usually over the asset's estimated useful life. A good way to think of this is to consider amortization to be the cost as the asset is consumed or used up while generating sales or profits for a company. Intangible assets can include a patent, trademark or trade name, or a copyright. Major inputs into the amortization process include useful life, residual value and the allocation method, the last of which can be on a straight-line basis that is mostly straightforward. http://www.investopedia.com/articles/investing/090213/explaining-amortiz...

Am I thinking wrong about this? 

No.  That's spot on.  Though, actually, I was referring to the charge to p+l rather than the carrying value.

Unfortunately, the calculation of the amortisation doesn't agree with your stated policy of 10% straight line.

 

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By User deleted
26th Jun 2014 14:58

If you want to understand and learn more ...

... ask your accountant. If you don't have one, get one. Or sign up for a basic accountancy or bookkeeping course. What part of that advice is so difficult to understand? Carry on like this, and you'll just become a laughing stock.

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By sofj
26th Jun 2014 15:40

Use a search engine instead

I see the link does not work to the article. Type in: investopedia amortization intangible assets into your search engine (I use chrome). It is the article dated 2 Sep 2013

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By sofj
26th Jun 2014 17:49

I found it
This is how it is corrected.
When i calculated the 10%straight line for the trademark in the statutory accounts. In the start of 2011 it had a value of £686. During the period up until 2012 there is a a decrease/amortisation of 10% (£69). It should mean a value of £617 at the start of 2012. During the period up until 2013 there is a decrease/amortisation of 10% (£62). It should mean a value of £555.

This is the figures I put in the CT600.

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By User deleted
26th Jun 2014 18:17

Head ... meet brick wall

What you are describing is not straight line. For the sake of harmony on this site, please go and find an accountant to pester.

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By mrme89
26th Jun 2014 18:21

"Head ... Meet brick wall"

Too late BKD, I think train has already met crash.

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By sofj
26th Jun 2014 18:52

A small eureka moment
Is this formula correct?        Calculate the amortization per year using the formula:          Initial cost/ useful life = amortization per year        Therefore £686 / 10 = 68.6          I hope the head left the brick wall and the train entered the station again.          Accountant are great and your comments help me to find solutions. 

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By User deleted
26th Jun 2014 19:10

Well at least ...

... there is an understanding of basic arithmetic. Beyond that ...

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