Originally posted by Nixon Williams
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Previously on "Capital Allowance treatment on disposal of fixed assets (due to damage)"
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Originally posted by css_jay99 View Postthanks guys.
Alan,
regarding the fully depreciated laptop in (2), I did claim the yearly 25% CA so i guess no other action is needed
..... so comming to the company accounts side
1) For 2 year old laptop not fully depreciated
would i have to write off the written down value against p&l ?
i.e,
Credit cost to Fixed Asset A/c
Debit cost to Asset disposal A/c
--
credit accumulated depreciation to Depreciation A/c
Debit accumulated depreciation to Asset disposal A/c
You have the last two the wrong way around!
where Asset disposal a/c will be a p&L Norminal account code
2) for a fully depreciated laptop
I take it that this will be purely a balance sheet transaction ?
i.e,
Credit cost to Fixed Asset A/c
Debit cost to Depreciation A/c
Yes, assuming that the asset has been fully depreciated.
By the way, I am using Sage Instant accounts
cheers
Leave a comment:
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thanks guys.
Alan,
regarding the fully depreciated laptop in (2), I did claim the yearly 25% CA so i guess no other action is needed
..... so comming to the company accounts side
1) For 2 year old laptop not fully depreciated
would i have to write off the written down value against p&l ?
i.e,
Credit cost to Fixed Asset A/c
Debit cost to Asset disposal A/c
--
credit accumulated depreciation to Depreciation A/c
Debit accumulated depreciation to Asset disposal A/c
where Asset disposal a/c will be a p&L Norminal account code
2) for a fully depreciated laptop
I take it that this will be purely a balance sheet transaction ?
i.e,
Credit cost to Fixed Asset A/c
Debit cost to Depreciation A/c
By the way, I am using Sage Instant accounts
cheers
Leave a comment:
-
Originally posted by css_jay99 View PostHi,
I wanted to know if there is any capital allowance adjustments that need to be made for :-
1) 2 year old Laptop purchase with full 100% CA given in year of purchase.
Laptop broke a couple of months ago
2) A fully depreciated laptop that has now given up the ghost. I did not claim full Capital allowance on this one ...just 25% .....
css_jay99
2. If it is fully depreciated (implying that this is a few years old), why have you only claimed 25% in capital allowances? The old rate a few years ago was 25% per annum, so it should have been mostly reclaimed in capital allowances.
However, if you have only claimed 25% then write it off the balance sheet and make a claim for the balancing allowance for the remaining 75% you did not claim.
Alan
Leave a comment:
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You're right - if they are pooled and there's no proceeds then there's nothing you need to do. When you cease trading there's simply a balancing allowance or charge on the remains.
You may need to adjust in the accounts though, if you capitalised them when you bought them.
Leave a comment:
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Capital Allowance treatment on disposal of fixed assets (due to damage)
Hi,
I wanted to know if there is any capital allowance adjustments that need to be made for :-
1) 2 year old Laptop purchase with full 100% CA given in year of purchase.
Laptop broke a couple of months ago
2) A fully depreciated laptop that has now given up the ghost. I did not claim full Capital allowance on this one ...just 25% .....
I was on the assumption that since assets need to be pooled then there is no way to make any Capital allowance adjustments in Tax computations or I am talking rubbish?
cheers
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