Hi,
I have a rental property which I currently do the books for as a way of putting to practise what I am currently learning. I did originally appoint an accountant, who I am happy to do the first years accounts (until I get up to speed), but hopefully after that I will do it all myself. However, I have a couple of questions:
1) I purchased some smoke alarms (£29.98) which I entered as fixtures and fittings. Should I include these as fixed assets or account for them as an expense in the profit & loss account?
2) Similarly, I purchased various equipment/tools which I have entered as fixed assets and have chosen to depreciate at 20% on a reducing balance basis. Should I contact my accountant to find out what method of depreciation he is using?
3) I have also entered furnishings as fixed assets and I am depreciating at 25% straight line. Is this OK?
4) The property itself is to be revalued each year. I have left the value as the purchase price this year as I am not sure how to treat this yet.
I have just completed my first years final accounts (as the first transaction was 13th October 2011, £50 for a search fee). Therefore I presume my year goes from Oct 1st - Sep 30th?
I am currently using excel until I become more proficient with Sage. I hope to then keep my own books and hopefully pick up some work keeping other peolples as well.
Any advice will be gratefully received.
Kind Regards
Phil
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