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• # 97217
• Tue 21 Jan 2014 03:29 PM

Hi all

This is the first time I have posted a question on here. But I have a question that is puzzling me!!

When doing bookkeeping for a property developer, who has bought a property for £240,000 then demolished the property to build a block of 10 apartments and sell them on, how would this be dealt with.

When the property is bought originally it is an asset at £240,000, how would the increase in the nw builds value then be dealt with in bookkeeping terms??

Thanks in advance for your opinions

Sarah

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• # 97380
• Thu 30 Jan 2014 11:31 AM

Hi Sarah,

you would put the revaluation of the flats to a revaluation account in the cr side with the amount of the difference between the amount then and the amount now in other words the increase and in the assett account on the dr side for the increase in value,

Kind regards

Paula Welsh

• Hello all,
  
  i just noticed we have a forum, just poking around the members area.  My name is Paula welsh and I have been a member since 2005, starting with Associate member and now a full member

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• # 97381
• Thu 30 Jan 2014 11:34 AM

kk

Edited at 30 Jan 2014 11:35 AM GMT

• Hello all,
  
  i just noticed we have a forum, just poking around the members area.  My name is Paula welsh and I have been a member since 2005, starting with Associate member and now a full member

• 
  Quote
  

• # 97382
• Thu 30 Jan 2014 11:35 AM

Hi Sarah,

you would put the revaluation of the flats to a revaluation account in the cr side and in the assett account on the dr side for an increase,

Kind regards

Paula Welsh

• Hello all,
  
  i just noticed we have a forum, just poking around the members area.  My name is Paula welsh and I have been a member since 2005, starting with Associate member and now a full member

• 
  Quote