Question asked by Jeanie Stevens 9 years ago
Hi there,
Just wondering which is the right way to go about writing off a fixed asset? It was for equipment stolen, and obviously I need to make sure that no depreciation has been accounted for since.
Thanks,
Jade
Hi Jade
As you say, first off you need to make sure no depreciation has been journalled in since the theft.
Next i'd create a new nominal code in the P&L called something like 'profit/loss on asset theft'.
You'll then need to do a journal as follows:
CR Fixed assets for the original purchase price DR Accumulated depreciation for the depreciation to date DR/CR the balancing amount to the new P&L a/c called profit/loss on asset theft
Are we talking a reasonable sum here? If so, make sure you keep supporting evidence in the form of police report docs etc.
If there's an insurance claim the sum received will go back into the accounts as other income or something along those lines.
Then, if you re-purchase said asset it'll be capitalised in the usual way.
Come year-end make sure your accountant is aware of the issue as the theft itself won't be allowable for tax purposes [as presumably the purchase has already been claimed as a capital allowance].
Best answerPS Sorry about the journal formatting, that's Clear Books not me!
Hi Kevin,
Thanks for this. The depreciation has run on, and I am now going back and deleting the journals since the theft. However, they are still showing on the asset page, and also on the asset totals page. If I go into the journal itself, it says it's been deleted, but I obviously don't want it to show in the accounting figures still. Is there a way of resolving this?
Thanks,
Jade
Hi Jade
Hmmm...it's a pretty tricky one for me to comment on without actually seeing the data itself, without that i'd just be guessing.
It might be best to drop a quick support ticket to Clear Books, pointing them in the direction of this thread. I'm sure one of them will be able to jump into your account to see what's what.
Hi Jade,
As Kevin suggested, the best thing to do is to raise a Support Ticket with us so that we can have a look in your account and discuss the issue with you in a private setting.
You can do this by emailing us at contact support.
I look forward to hearing from you.
All the best.
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