UK receiving contributions for Expenses

[Christopher Peacock]

Hi all,

We recently purchased all new IT Servers circa 25k. We will now be sharing the servers with another organisation, and they have agreed to pay half of the cost. How do I record the "Contributiuon" I was going to simply credit the fixed assets account, with a payment, but do want this to alter the appearance of the value of the equipment on the balance sheet. The new company will also partly reimburse some additional items purchased, for these expenses, can I simply credit the relevant expense account

Thanks

 

[Counterofbeans]

Hi all,

We recently purchased all new IT Servers circa 25k. We will now be sharing the servers with another organisation, and they have agreed to pay half of the cost. How do I record the "Contributiuon" I was going to simply credit the fixed assets account, with a payment, but do want this to alter the appearance of the value of the equipment on the balance sheet. The new company will also partly reimburse some additional items purchased, for these expenses, can I simply credit the relevant expense account

Thanks

You record the contribution by Dr Cash and Cr Fixed Assets and/or Expense