Canada capital cost allowance

[snickered]

when converting to simply accounting last year, the bookkeeper made a misc. trans. so that the original purchase price of items would be entered into the mix. it looked like this,

CR Capital Cost balance fwds 100,000.00
DB Kitchen Equip 15,000.00
DB China 3,000.00
DB Office 1,000.00
DB Building 81,000.00

with the additions & amort. this year, this is what the Balance Sheet looks like this year, which seems totally wrong,

Capital Cost balance fwds (100,000.00)
Kitchen equip 18,230.00
Accum. Amort. 113.51
Net - Kitchen 18,343.51
China 3,950.00
Office 1,725.00
Building 81,000.00
Leasehold improvements 699.99

TOTAL CAPITAL ASSETS 5,718.50

i have no idea how to fix this, i just know that the capital assets are worth more than $5718.50.
Can someone please tell me how to fix this.

 

[MK_Dizzle]

You'll have to look where the close off for the capital cost account is. It seems that she/he should have done two seperate journals:
1. cr the capital cost account and dr the profit of 100,000
2. cr the profit and dr each individual asset.

This would stop there being a negative brought forward balance on the capital cost account which is a mistake as Fixed assets shouldn't generally be negative balances, hence why your total assets are only showing the increase in assets this year.

The easiest way to fix the problem is to start again. Reverse all the balances via journal and post the above one if you would like the entries to be shown seperately. Also check that the kitchen equipment should be depreciated and not amortised and furthermore, the balance should be taken away because in your question the net balance seems to include the NBV plus the amortisation.