Land Purchase
Question asked by John Ridd 10 years ago
The company has purchased some land which I understand should be treated as an investment rather than an a depreciated asset, what's the best way to add this to our balance sheet?
Hello John,
The best way to do this is to make a new account code
Make the code for Land and Buildings. http://www.clearbooks.co.uk/support/guides/codes/adding-new-account-codes/
When you have completed that, you will need to use a Journal to account for it on the system without it having depreciation.
Go to Tools > Journals > Create. You will need to use the account code you made and then the opposite will be the bank charge you used to pay for it. Please can you consult with your accountant as to which debits and credits you will need to use in order to show an outgoing on the bank and an increase in the land asset.
Vanish
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