UK Renting in items to rent out

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Hi,

I've just started working for a friend, helping with bookkeeping for their new business - and also trying to set up their accounts fully. (I am part qualified, inexperienced, so they will get an accountant at the end of the period if I can't do it all.)

Anyway, this is a rental company. They have one main asset (maybe more in future) and rent it out. This is down as a fixed asset.

However, they also rent in 'extras' which are then also rented out, with the main service. Is there a particular way this must be accounted for?

Thanks for any advice

(and sorry if this post isn't in the right place, doesn't make sense, or is a silly question. I'm super new.)
 

Steve-LevelUp

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It does make sense to record the main asset as a fixed asset. Other extras that are also rented out, are they "assets" as well?

Income from the main asset should be recorded to its own revenue line, and revenues from extras should each have their own revenue line, so that you can see revenues for the main and for the extras separately.

I hope that helps.

Please let me know if you need further clarification.
 

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