Tangible assets not depricated year on year

Posted by VictoriaWilliams PM | on Mon, 19/03/2012 - 14:22 609 4 comments | report

Hello

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.

Comments

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Eh?

Euan MacLennan | Mon, 19/03/2012 - 14:33

Only had a quick read but

Fred Smith | Mon, 19/03/2012 - 15:18

Loss this year but inflated profit previous years

SJRUK | Mon, 19/03/2012 - 16:48

Thank you for your relies,

VictoriaWilliams | Tue, 20/03/2012 - 10:26