A client bought the fixtures and fittings and goodwill of a coffee shop for £15k. The sale inventory lists all items that were bought by my client such as the service counter, restaurant and garden furniture, cooker and kitchen equipment, fridge, freezer, crockery & cutlery, till, etc. No breakdown of the £15k was given by the vendor and my client says that she has had to replace a lot of the items that were listed & suggests that of the £15k only £1k could be attributed to the value of the fixtures, fittings and equipment that she bought. We have tried to obtain a breakdown of the amount between goodwill & fixtures but with no luck. How should I split the purchase and what do I do with the items replaced i.e. are they revenue or capital items??
Bones
26th Apr 2005
1
Treatment of cafe purchase
Treatment of cafe purchase