In March I sold my company van and a couple of days later bought a car to replace it.
When I do a P&L report the sale of the van is there as the sale of an asset, but the car purchase doesn’t appear. It was done as a purchase invoice posted to 0050 Motor Vehicles and tagged to the outgoing bank transaction.
Should I expect to see it? And if so where have I gone wrong…
When you bought your van as an asset, it wouldn’t have showed on P&L but will be reflected in changes on your Balance Sheet.
You will then presumably have recorded Depreciation each year which will have shown on P&L (and Balance Sheet).
On selling your van, you will have either made a profit, loss, or neither (i.e. [sale price] = [purchase price] - [accumulated depreciation]). As you say the van appears in P&L, it suggests you made a profit or loss on it.
Your car won’t show in P&L until you record depreciation and the profit/loss on disposal. However, it should be reflected in your Balance Sheet.
Also you say you sold in March and bought the car a few days later but don’t specify if those days spanned a financial year end. If it did, check the dates of each report too.
Thanks, that all makes sense. My accountant, who has now retired, didn’t use Quickfile so I supplied printouts of all the figures for him to do my tax, so I now realise that things like depreciation were done by him outside of Quickfile so all the information isn’t in the system. Something else to sort out.
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