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Sale of leasehold Property

My client is a restaurant with 2 branches and sold the leasehold on one of the shops

My client is a restaurant with 2 branches and sold the leasehold on one of the shops and I am having a blank brain on the double entry

NBV on leasehold and Improvements £42,237.50

NBV on goodwill on purchase of site £9,000

Proceeds £35,000

 

Many thanks in advance

 

 

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By DJKL
13th Sep 2017 15:12

Proceeds ,Dr bank £35,000, Cr Loss on disposal £35,000

Cr Leasehold improvement cost
Dr Leasehold improvement depreciation
Dr loss on disposal £42,237.50

cr Goodwill cost
Dr Goddwill acc amortisation
Dr loss on disposal £9,000

If you wish to show the losses on disposal as distinct amounts you will need to allocate the £35,000 between the heads, you will possibly need such a split re tax anyway.

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17th Sep 2017 11:20

what happened to the F&F ? [ you know the chairs tables fridges etc [or did you put them in storeage ?] and dont forget about accounting for say Stock [ food liquor etc ...]

hope you had all final meter reads done and cancelled all on going DD's regarding the site - contracts etc [ and informed your insurance co etc..] just a few post thoughts as you seem to be short on the ground as whats happened

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