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• # 76449
• Mon 14 Nov 2011 08:58 PM

Hello

I am working my way through 3 years worth of purchases for a couple who purchased a b&b.  They have spent a lot of money on purchasing furniture, decoration, hiring plumbers and electricians etc.  Should I class the furniture as assets and the work completed on the rooms as repairs and renewals and then let the accountant decide what he wants to do with it.  I am not sure at the moment what were repairs to existing items and what was an upgrade to what was there so my client is going to look through it all when I have completed what I need to do and seperate it all ready for his accountant.  Apologies if this isn't very clear, it's been a long day :-D

Also, for instances such as putting in new bathrooms - not sure whether I should record this as fixtures & fittings or repairs and renewals.  If someone could point me in the right direction?

Thank you in advance

Terri

Edited at 14 Nov 2011 09:01 PM GMT

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  Terri Homyard AICB CB.Cert PM.Dip (Based in Sheffield)
  Email me at terri@a1-bookkeeping.co.uk
  www.a1-bookkeeping.co.uk 

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• # 76623
• Fri 18 Nov 2011 01:19 PM

Hi Terri

Yes the furniture and actual bathroom assets should be capitalised, as no doubt they were expensive items and are expected to last more than a year. However if they've bought (e.g.) soap dispensers for the bathrooms, towel rails, etc. they are low value items and should be expensed into the P&L.

The workmen's charges should be expensed in repairs and renewals - even if it was to fit new items, R&R on the P&L account would be the best place to record them.

Hope that helps :-)

Helen.

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