Capitalising expenses

Danai Mujahu

I use Reckon Home and Business 2013 (soon to upgrade to 2015). For the last couple of years, I have been expensing amounts related to a house renovation. Have made a decision to capitalise these costs and include them as in the “property” assets. Since there is no ability to post journals, is it a matter of just re-categorising the items to the property assets (via category)? Or are there actual steps I’ll need to observe

Kevin Silberberg

Journal entries will suffice (Credit Bank, Debit Asset).  However, if you cannot perform journal entries, when you receive a Tax Invoice relating to the acquisition of an asset, instead of posting to an expense account you should post to an asset account set up for tracking the property assets.  Pay the bill as normal.  Essentially, the Tax Invoice for the asset involves Credit Accounts Payable (with the creditor identified) and Debit the asset.  When you pay the bill, the effect on the accounts is Debit Accounts Payable and Credit the bank.