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Hi Dave, I hope I'm not being totally stupid here or have missed seeing the answer to this in the books.
My question is if I plant christmas trees in year 1 they will not be mature enough to sell until after year 7. To build a clientelle up over the years until my trees are ready I would buy christmas trees in to sell, as these trees haven't been grown on my land would it count towards the financial/viability test and as these trees haven't been "produced" by my land would I need planning permission until I was selling my own trees.
Thanks Lynne
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Buying in and selling from the land
Started By
Lynne
, 15 Jul 2010 10:29
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#2
Guest_Dave_*
Posted 15 July 2010 - 13:01
Guest_Dave_*
Guest_Dave_*
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- Guests
Hi
You could use the income from selling the trees towards the overall income for the viability test, if you are not precise when making up your accounts as to where the money came from if say it was listed under plant sales. In theory you would need planning permission to sell the trees but it is such a short selling season that the planners wouldn't have time to do anything and know it will come to an end soon anyway.
Regards Dave
You could use the income from selling the trees towards the overall income for the viability test, if you are not precise when making up your accounts as to where the money came from if say it was listed under plant sales. In theory you would need planning permission to sell the trees but it is such a short selling season that the planners wouldn't have time to do anything and know it will come to an end soon anyway.
Regards Dave
#3
Posted 19 July 2010 - 15:19
farmershort
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- Members
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- 14 posts
Chick
Interesting question - and not one I'd thought of. we'd planned to factor in 1/4acre to 1/2acre of xmas trees per year, with the hope that they start coming online in year 7, and start bringing in good money.
As you say, the first 7 years will have to be bought in xmas trees - so, would you show the outgoings on your accounts? or would you buy them out of personal money, and only put down the income from the trees? Obviously using the 'plant sales' label that you give above..
Thanks
FS
As you say, the first 7 years will have to be bought in xmas trees - so, would you show the outgoings on your accounts? or would you buy them out of personal money, and only put down the income from the trees? Obviously using the 'plant sales' label that you give above..
Thanks
FS
#4
Guest_Dave_*
Posted 21 July 2010 - 17:01
Guest_Dave_*
Guest_Dave_*
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- Guests
Hi
I would show the outgoings as as trees bought in the same way that you are buying in the saplings.
Regards Dave
I would show the outgoings as as trees bought in the same way that you are buying in the saplings.
Regards Dave
#5
Posted 26 December 2011 - 11:51
saffire
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- Book Owners
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- 66 posts
Goose
- LocationUK - location withheld ( paranoia)
Hello all
To answer your question about how you show the cost of buying trees in your accounts.
Include costs in purchases in usual way on profit and loss account then again under current assets as stock - valued at lower of cost and net realisable value - on balance sheet.
If you need to use personal money to buy your stock include that in the accounts on balance sheet as capital introduced.
Do this each year adding to your stock carried forward.
When you start to sell trees in year 7 include revenue on profit and loss account for that year and deduct (cost value) from stock of trees carried forward.
Hope that makes sense. (i used to be an accountant in a former life)
Regards
saffire
To answer your question about how you show the cost of buying trees in your accounts.
Include costs in purchases in usual way on profit and loss account then again under current assets as stock - valued at lower of cost and net realisable value - on balance sheet.
If you need to use personal money to buy your stock include that in the accounts on balance sheet as capital introduced.
Do this each year adding to your stock carried forward.
When you start to sell trees in year 7 include revenue on profit and loss account for that year and deduct (cost value) from stock of trees carried forward.
Hope that makes sense. (i used to be an accountant in a former life)
Regards
saffire
