Forum

• # 79494
• Thu 09 Feb 2012 06:19 PM

Hi

Hoping my fellow members can help with this one.

Scenario -Tricky

Jan 2010 - Purchase of Cooker January 2010 on buy now pay later 299.00, used privately 

Nov 2010 - Business Start Date

Jan 2011 - Cooker paid for with cash from business grant of (£1,000)

Cooker situated in home, 25% Business use and 75% private use.


1.  Can the cooker be transferred to the business at the NBV as of Jan 2011
2.  If so, the use of the cash from the business grant can be depreciated at the same time as the cooker?
3.  How would you depreciate when the asset is used privatley?  What would be the accountng procedure?

Any help would be appreciated.

Kind Regards
Helen D

Member in Employment

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• # 79653
• Wed 15 Feb 2012 12:26 PM

Hi Helen

This is a tricky one.

There are a few issues to be dealt with.

One should the grant money have been used to pay for the cooker in full or as I would suspect a contribution of 25% of the value from the grant would have been in order and the 75% should have come from the pocket of the proprietor.

s there are grants etc involoved and there is the argument a quarter of a cooker is worthless as an assett i wouls be inclined to call the ICB technical helpline for their guidance.

I would probably have dealt with it by expensing 25% of the value £75 and the other £224 I would have put to drawings. This would then at least be a correct reflection of the use of the grant money.

Kind regards
Stuart

• Forum Moderator, South East & Greater London Regional Chairman
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