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sale of company asset

Turnover or other operating income

Should a sale of a company asset [a van] be classified within Turnover or shown separately in other operating income in the P&L? The company's trade is in advertising and they sold one of their company vans during the year.

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29th Oct 2017 17:41

This is a forum for accountants. (Well, I say that ....)

You should refer this question to the company's accountant.

Why have you posted anonymously?

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to Accountant A
29th Oct 2017 18:09

It IS the accountant.

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29th Oct 2017 18:13

Think you might be getting confused. Are you saying the company raised a sales invoice for the sales proceeds of a van? In which case you need to dispose of the van from fixed assets and once you have done this you will be left with a DR or Cr on disposal and this needs netting off against the nominal account where the van sales proceeds are posted to leave a profit or loss on disposal in the P&L.

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to newstarter01
29th Oct 2017 19:35

Whoosh! Sort of went over your head that question didn't it...?

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to Tim Vane
29th Oct 2017 21:58

umm no

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to newstarter01
29th Oct 2017 22:12

newstarter01 wrote:

umm no

Double whoosh. No clue.

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to Tim Vane
30th Oct 2017 10:56

My answer was prefixed with an assumption based on a similar experience, ie client raising sales invoice for sale of asset. My answer was based on that assumption in light of absence of additional info from OP.

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By Matrix
29th Oct 2017 18:20

You will need to look up the disclosure required depending on whether you are preparing accounts under FRS102 or FRS105. Under the FRSSE this was an exceptional item disclosed separately.

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29th Oct 2017 21:30

The answer is neither.

This forum's getting worse.

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