Record the purchase of a property asset

[Peter_Betts]

Scenario : I am a landlord and run a property rental business. I purchase properties to rent.

I want my Quickfile records to correctly reflect the asset worth.

For example. I purchase a property as below…

It shows I deposited £300 to the conveyancer on account and then later deposited money from the business to make the purchase, This example shows I sent a further £134,819.00 to the conveyancer.

How do I record the purchase ?

• I “think” I want to end up with the cost of the asset in my Journal Entry “(0010) Freehold Property” ?

• Should this journal entry show the actual purchase price of £130,000 or
  the sum of money in total it took to purchase the house, in this case £135,096.88 (The sum of all the expenses and stamp duty etc) ?

• What will my journal entry look like in the end ?
  

  

I’m really confused how to balance the (0010) Freehold Property journal, so I stuck it in Suspense.

Should I be creating a Purchase Invoice for each house ? Making sure each line of the purchase is for the correct journal ?

Which I paid from a made up bank account, (As this transaction was from another bank account not in Quickfile)
Giving a Journal like this…

I am “retro-fitting” these purchased into book keeping that is now 5 years in size and has had 4 years of annual accounts.

So I guess I am asking how best to represent the houses I have now and then the correct way to add houses in the future.

Thanks for you guidance.

[JamesWhitelegg]

Hi Peter,

You sound like you already have an accountant. Have they not provided any advice?

As what we advise on here won’t be any use if it doesn’t match the annual accounts…

James

[cbstephensaca]

You need to obtain the trial balances for your 4 years of annual accounts, and match the entries to those. You can add a journal for each trial balance.