Hi
Small charity with gross income less than £250k (independent examination required). Accounts are prepared on the payments and receipts basis. My query is, do I show purchases of fixed assets in the statement of assets and liabilities (balance sheet) or in the statement of financial activities (p&l) under payments?
I am not quite familiar with this basis of preparing accounts even though I have gone through the Charities commission guidance but still not that clear. thanks.
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Both.
The two statements aren't linked in the same way as proper accounts are.
Is it a payment ? Yes. So it goes in receipts and payments.
Is it an asset ? Yes. So it goes in assets and liabilities.
so, that means that statement of assets and liabilities is manually prepared as a list of balances?
