troubleshooting Question

DOUBLE-ENTRY ACCOUNTING FOR SHARED PROPERTY

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xenium asked on
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I think I’m looking for the “experts-exchange.com” for accountancy, can anyone recommend one? I need help in tidying up accounts on a private family property project, and am looking for an accountant to check the steps as I walk through them. Below is an outline of the first steps which I am looking for advice to confirm or correct:

The currency is GBP but happy to talk in dollar for illustration purposes.

Step 1: Opening balance: Family property worth 100k, owned jointly by John, Anna, and Alex, split 40:30:30

Debit 100k: Property asset account
Credit 40k: John's equity account
Credit 30k: Anna's equity account
Credit 30k: Alex's equity account

Step 2: Alex invests 66k from his bank account to develop the property, and 118k worth of his time

Debit 66k: Capital expense account
Credit 66k: Alex's cash account

Debit 118k: Capital expense account
Credit 118k: Alex's "sweat equity" account ?

Step 3: The property is revalued at 300k, an increase of 200k on the initial value

Not sure what to do here initially, maybe

Debit 200k: property asset account
Credit 200k: capital expense account ?

That's it for now. I would envisage maybe upto a dozen similar-sized questions spread over a number of weeks, and in parallel I would study material eg from www.principlesofaccounting.com to understand the processes better. I would be willing to pay for professional support if anyone can recommend an online resource I would be very greatful.

Thanks!
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