Any thoughts on the following problem:
A leasehold property agreement has been entered into by a director operating a letting business via a limited company.
The leasehold agreement was made between the landlord and the director, in the director's name, not the limited company name.
A payment was also made to the previous tenant by the director personally of £50,000 (not paid by the limited company).
The company is operating a letting business and in preparing the year end accounts has:
Capitalised the £50,000 payment to leasehold property under fixed assets.
Amortised the lease over the lease term of 20 years and provided £2500 in the p&l.
As the lease agreement is in the director's name and not the company name is this treatment correct?
If not how do you correctly account for this transaction?
Thanks for your answers.