How to show an asset

How to show a bequethed asset in accounts

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We are a micro business that runs art exhibitions from time to time. We have recently been given approximately £100,000's worth of art. We haven't paid a penny. How do we show this in the accounts presented to HMRC and Companies House?

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By johngroganjga
09th May 2017 15:24

Your accountant will deal with it when the time comes to prepare the company's accounts, but the first question they will probably ask is by whom and to whom the artworks were "given".

In your heading you use the word "bequeath". Does that mean that they came from the estate of a deceased person. If so what did the will of the deceased person say about where the artwork should go.

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Replying to johngroganjga:
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By Kiredoryor
10th May 2017 10:39

johngroganjga wrote:

Your accountant will deal with it when the time comes to prepare the company's accounts, but the first question they will probably ask is by whom and to whom the artworks were "given".

In your heading you use the word "bequeath". Does that mean that they came from the estate of a deceased person. If so what did the will of the deceased person say about where the artwork should go.

Yes, the will specifically leaves the artwork to the company. I believe because the business organised several successful exhibitions for the artist.

Our income is infrequent and not large so I usually prepare the accounts for submission to HMRC and Companies House on the gov.uk forms so do not have an accountant to prepare them for me.

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Replying to Kiredoryor:
RLI
By lionofludesch
14th May 2017 15:35

Kiredoryor wrote:

Our income is infrequent and not large so I usually prepare the accounts for submission to HMRC and Companies House on the gov.uk forms so do not have an accountant to prepare them for me.

These are the times when you need the support of an accountant.

Personally, I would be wanting to confirm the exact terms and details of the bequest before I made any comment.

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Replying to johngroganjga:
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By Kiredoryor
14th May 2017 09:57

Yes, the will specifically leaves the artwork to the company. I believe because the business organised several successful exhibitions for the artist.

Our income is infrequent and not large so I usually prepare the accounts for submission to HMRC and Companies House on the gov.uk forms so do not have an accountant to prepare them for me.

I just wish to make sure that I enter this as an asset in the correct place.

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By WhichTyler
09th May 2017 16:56

did someone really bequeath £100k to a company? not to the individuals that own it? If so then depending on what you intend to do with the art, then Cr Income with the value and Dr Investments or Trading Stock or even Heritage Assets...

PS I agree with John

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Replying to WhichTyler:
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By Kiredoryor
10th May 2017 10:42

WhichTyler wrote:

did someone really bequeath £100k to a company? not to the individuals that own it? If so then depending on what you intend to do with the art, then Cr Income with the value and Dr Investments or Trading Stock or even Heritage Assets...

PS I agree with John

Thanks.
We will include the works in future exhibitions. It is not our intention to sell the artwork.

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