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Hi, while I read and Google and watch videos about it, I thought I'd ask in here. My company is at the point where I could no longer afford my accountant and need to do the EOY myself. I'm confused, but will try to be as clear as possible.

Summary:
1. I have sold a fixed asset from the Plant Machinery NC and am unsure how to record the £300 money in on the bank statement in Sage
2. I am unclear how to log the NCs for Depreciation, This Year, Brought Forward.

Detail:
I have the following NC's and not sure how to proceed with the sale of the asset or the yearly depreciation recording.

0020 Plant Machinery (Debit £14,000) <-- £300 asset was/is in here
0025 Plant Machinery Depreciation Brought Forward (Credit £12,000)
0026 Plant Machinery Depreciation This Year (zero)
8001 Plant Machinery Depreciation (zero)

and also,

0030 Office Equipment (Debit £3,200)
0035 Office Equipment Depreciation Brought Forward (Credit £3,200)
0036 Office Equipment Depreciation This Year (zero)
8004 Office Equipment Depreciation (zero)


So if I can ask;

Would it potentially be better to log the £300 sale as miscellaneous income (sold in Feb) and fully depreciate the Plant and Machinery to balance? If so, how do I do that journal to fully depreciate the Plant Machinery and then, I assume, the opening balance for the next year will be zero and won't need to be touched? If not then...

How do I log the £300 sale?
Do I ignore the annual depreciation on the Office Equipment that has now fully depreciated and don't Bring it Forward so the next year shows 0?
At what point can I fully depreciate an asset in terms of percentage etc? Can I fully depreciate that Plant and Machinery now?

Do I do this depreciation before running EOY and then where do I journal the Depreciation Brought Forward to and from and is this done after EOY?


Apologies for all of the questions, but things are pretty bad right now. If I could afford an accountant I would but I can't even pay the mortgage.

FWIW, I believe the company has made a loss for this year.

You need advice from an accountant.

Thank you for the reply, but I don't have the money to speak to an accountant so was hoping to get some guidance here. I imagine it's very simply, I just want to make sure I put the figures in the right NCs

Well I can say what I would do, but you must understand this is just an opinion, I am not a qualified accountant and my advice and liability is what you paid for it.

The sale of the £300 asset should be put against the Plant and machinery in the balance sheet. You could do this as a Bank Receipt against 0020. You have converted n asset in the form of plant into an asset in the form of cash in the bank balance it has no impact on the P&L.

You need to calculate the depreciation amount, e.g. if depreciate by 25% reducing balance you take 25% of the £1700 = £425 and you journal it as a Credit to 0026 and a Debit to 8001 on the last day of your financial year, (this puts the cost of depreciation into the P&L). After year end you journal is again from 0026 to 0025 to show the new b/f balance. (Personally I would just have a depreciation account and not have one for B/F and one for the current year. It saves a journal but hey ho that is how it has been set up in the past and you might as well run with it.) If you have some other depreciation policy then you follow that. HMRC have rules about what you can do for tax purposes with depreciation, you need to check you are compliant with them.

When an asset is fully depreciated you can journal all the depreciation against the asset and all be zero.