I would need some advice where to post kitchen utensils (ie wooden spoons,etc) in sage in case of a restaurant/take-away. Is it purchase charges ( in the region of 5100), direct expenses or overheads? I did set up an account in purchase charges where plates,cutlery and glassware goes but I am not sure if it is right...
I think you need to look at the fact that Cutlery, Plates Glassware and Kitchen Utensils could be classed as consumable items as such. they get broke, so they get replaced.
I would have thought that when they first setup in business, they classified the initial purchase of these as assets until the value depreciated each year until nil.. Subsequent purchases to replace these I would imagine go into the profit & Loss account some place if purchased at a small value.
If they replace as a job lot, then they could be assumed to be replacement of Assets and I gather by the fact that the value of £5100, it would better off being treated as an Asset in the balance sheet and depreciating accordingly.
Obviously without seeing previous accounts and knowing the history of the business, its hard to recommend a solid solution. I hope these points may have given you a few ideas.
sorry 5100s i meant nominal code in sage it's not the value...the actual value is something like £5. when i first set up the chart of accounts i chose the type of business to be hotel/restaurant and plates etc. were in purchase charges in the original set up in sage with the n/c 5100 so i did set up an account there (n/c 5130) for kitchen utensils (not for machinery/equipment) - i don't want to depreciate a wooden spoon ;) Being small amounts it is not going to make a big difference... But from here I got another question. As the business is a take-away,too do I still post plastic cups,takeaway boxes,etc to the same category (cost of sales-purchase charges)?
-- Edited by attilabenko on Monday 6th of September 2010 09:15:36 AM
I would set it up as a direct cost in the 6000 range. I would treat it the same way as "small tools" for a builder. Perhaps I'm reading it wrong Merlion but I think the 5100 Atilla is refering to the Sage nominal code and not the financial value.
Personally, I'd never put "kitchenware" under assets. I doubt they last more than a year and anything less than £100 I personally would avoid capitalising.
Tony.
-- Edited by ADAS on Sunday 5th of September 2010 08:37:14 PM
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
Thanks for the info. I shall move kitchen utensils from 5100s to r&r (well i think i make a new n/c for them in 7800s to keep track of them) and keep takeaway boxes in n/c 5100 where I originally posted them...
