help with DJ accounts

southernshepherdess

My partner is a DJ and up until 12-13 his biggest expense was a computer which I ran through as an expense as them never last long if you dont buy top of the range.

The earnings have always been what was left over after all the expenses so pretty simple.

However, his mum died and left him some cash which he has invested into a load of equipment. It will also mean a loss as work has been thin on the ground and hes done a couple of loss leaders for advertising purposes.

The question is now, how do I treat this. Im getting bogged down in allowances and stuff and also the investments other side in the accounts.

Im guessing, his purchases of equipment are balanced in a capital account?

But what with the assets, can I include them as an AIA this year? And does that then classify them as an expense?

Oh lord my brain will melt

purdyoaten

The assets would be shown as additions in the balance sheet. The inherited money is cash introduced and must not be included in turnover. AIA can be claimed in the tax computation. Some figures would help.

southernshepherdess

Hi,
Thanks for the reply.
My partners self employment hasnt gone well over the last few years as he is a club dj and the clubs are shutting down all over the place.
When his mum died he inherited some money....There was no money at the end of the year in the as that was his wages last year after any cost etc. (£1444)
This time, he has used the inheritance (not included in turnover) to basically pay all the costs and purchases etc for the business, essentially what he inherited has become the "loan" account. So Im assuming that would be his owners capital a/c.
The other part I was struggling to understand was the AIA, although it seems like its almost classed as an "expense" now?