Payment in-kind assets

[neophyte]

I’ve recently set up a non-profit community newspaper company limited by guarantee without shares. It’s a news-site, archive-site, and printed news-sheet. It will likely have a turnover of around £600.00 per year. I’ve gifted the company some assets and I’ve also loaned the company £600.00 interest-free over six years (I can afford to lose the money). It will receive an income from donations via the news-website which publishes local news, features and comment. It’s my retirement project which I was previously doing as an unincorporated organisation.

I’d like to register the gift of £64.00 of assets (website subscription) in the bookkeeping. These assets will be expended (as expenses) each month as their value decreases, whereupon I will purchase a new 12 or 24 month subscription. How do I enter these assets in Quickfile?

With the new company bank account I have also purchased 24 months of website hosting. I have tagged this as an asset which will be expended each month over the 24 months. How do I enter the depreciation or amortisation in Quickfile?

I’ve read elsewhere on this forum that a website is not an asset. However, I beg to differ as it requires a capital outlay and it directly brings in an income (albeit donated). I’m sure ft.com is classed as an asset as it brings in a handsome income (if my subscription fees are anything to go by).

Also, is a director’s loan an item of capital/equity or a liability?

My first posting. So please be gentle with me. Any help much appreciated.

Column 1	Column 2	Column 3	Column 4	E	F	G	H
Balance Sheet	30 November 2024
Assets		£	Term		Liabilities		£
Web hosting news site	Prepayment	£ 412.80	24 months
Web hosting archive site	Prepayment	£ 36.00	10 months
Domain name .com	Prepayment	£ 19.20	12 months
Domain name .org.uk	Prepayment	£ 8.00	7 months		PayPal loan		£ 0.01
Company reg		£ 50.00
					Capital
Cash at bank	Current	£ 87.21
	Savings	£ 50.00			Dir loan		£ 600.00
					Dir gift		£ 36.00
					Dir gift		£ 19.20
					Dir gift		£ 8.00
					Retained earnings
Total		£ 663.21			Total		£ 663.21

[QFSteve]

Hello @neophyte

Please remember the support team are not registered accountants and you should consult your accountant for advice on where to make postings.

There are similar threads on the forum which suggest creating a new merchant bank account (dummy bank account), posting a bank transaction for the income and tagging it to the new bank account. This would show it as a current asset.

You can then pay the purchases using the value in this account.

Also, is a director’s loan an item of capital/equity or a liability?

The directors loan account would also show in the banking screen and would show as a current asset or liability depending on the balance.

[neophyte]

@QFSteve thanks very much for your response. While I understand the very basic principles of book-keeping and accounting I think I need to read up on the mechanics of book-keeping and perhaps seek some initial advice from an accountant. And also just have a playaround with QF and read more of the documentation.