Yet Another Basic Accounting Question

Rob Brown-Bayliss on_the_net@clear.net.nz
20 Dec 2001 20:02:47 +1300


Hi, I have a house that I am building (taking forever on the weekends -
bad move) and I have accounted for it as an asset, and expenses for
construction.

Soon we are going to get it re-valued so we can beg the bank for some
more money, and I expect it to increase in value quite dramatically.

How would I treat the increase in the asset, for example does it come
from an income account?

The increase should be more than we have in the construction expense
account.  Should this not have been treated as an expense?



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  Rob Brown-Bayliss
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