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CJH1
#1 Posted : 19/02/2019
Joined: 7/11/2018(UTC)
Posts: 3

Thanks: 1 times
We are appropriating a property from General Fund to the HRA I was wondering what would be the best way to account for this. If we were to Debit HRA and Credit the General Fund Capital Receipts. We will potentially be charging the HRA twice when we have to show the funding of the asset purchase by charging the HRA and Crediting the Capital Adjustment Account. Any solutions as to how to correctly account for this will be gratefully received.
MSMK
#2 Posted : 20/02/2019
Joined: 2/24/2018(UTC)
Posts: 47
Organisation: Milton Keynes Council

Was thanked: 1 time(s) in 1 post(s)
No, you just increase your HRA CFR by the value, so that the HRA picks up the associated debt charges. No cash movement.
 1 user thanked MSMK for this useful post.
CJH1 on 2/20/2019(UTC)
CJH1
#3 Posted : 20/02/2019
Joined: 7/11/2018(UTC)
Posts: 3

Thanks: 1 times
Many thanks for the reply. We were not going to fund this from Borrowing but use HRA reserves.
John Everson
#4 Posted : 20/02/2019
Joined: 2/24/2018(UTC)
Posts: 26
Organisation: Dudley Metropolitan Borough Council

In that case, you will need to make a VRP (funded by drawing from reserves) to offset the automatic increase in HRA CFR.
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