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Where Taxpayers and Advisers Meet

profit and loss Query

H.Pettman
Posts: 1
Joined: Fri Nov 02, 2018 10:59 am

profit and loss Query

Postby H.Pettman » Fri Nov 02, 2018 11:07 am

can anyone with three questions please?


1. If a property company sells a property for £1 million, you would expect to see that £1 million under disposals in the relevant financial year (or would it be just say the profit or loss?).


2. If you know the £1 million proceeds had not been paid out, you would expect to see that in cash at bank, wouldn’t you?


3. Would the answer to either be different, if the property had been held on trust for a third party?

bd6759
Posts: 2890
Joined: Sat Feb 01, 2014 3:26 pm

Re: profit and loss Query

Postby bd6759 » Sun Nov 04, 2018 12:13 pm

1. Depends if the property was fixed or circulating capital.

2. Not necessarily.

3. Yes. It wouldn't be anywhere in the accounts.


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