Posting land purchases

[Nunky]

Hi,
I hope you can help me.

I'm a complete Sage newbee and have been using Line 50 Financial Controller Version 2007 for a few months now. I think I am moving along without any major hiccups

Our company (builders/property development) has recently bought 4 pieces of land & I've run into trouble posting these purchases on Sage.

The deposits on the land were paid by the owner of the company from his own funds before the company was formed. I assume that I need to somehow show these deposits paid as Shareholders capital or similar??

I also need to enter Stamp duty, the bank charge for the draft costs, VAT, some interest and some legal costs. And also the actual land cost.

I hope somebody can help me with the best way to post these transactions.

Best regards,
Nunky.

[brucedenney]

First you need to know how this "investment" by the owner is being treated.

Is it shares, or a loan?

I would guess a loan and the company will pay it back.


This becomes a simple journal in Sage. Directors loan account to Land Acquisition.

Then assuming the stamp duty VAT etc was paid by the director. Do a bank receipt into a spare/petty cash bank account or a real bank account if you want from the director for the total amount, then do multiple bank payments to balance the transfer (if you did it in a real bank account, do a bank rec and match off these "dummy" transactions)

You could do all the little bits as journals as well, but the vatable nature makes it a bit tricky, doing bank payments is much more friendly.