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Post Info TOPIC: Company purchases for own use and Depreciation
Jordan


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Company purchases for own use and Depreciation
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Where on the Trade Profit and Loss account does the value of company purchases used for own use go ?

Also, the trial balance has a provision for depreciation figure for a pc which will be included on the T.P.L. ? then there is also a note below saying that for the year the depreciation is to be 1/3 of the original purchase price.
Does this value plus the provision value be added together and put on the balance sheet against the pc ?

I think I have looked at this too long and now the head is scrambled, should be Simples ! but thx for the help.

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adi2402


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personal directors purchases should go to their directors loan account. Ensure VAT is adjusted for etc.

The deprecition at 33% straight lne will be a journal of Dr depn in P&L 33% and Cr Depn charge for year in balance sheet 33%.

hope that helps a bit

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Forgive the typo's I generally do not proof read. Just lazy I guess!
Stardoe


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Hi there,

Just to elaborate on JR's wink.gif reply a bit.

If this is a sole trader and he has taken drawings out of the business then the amount for drawings will not appear in the P & L but will be deducted from the Capital figure in the Balance Sheet.

The depreciation figure of 33% of the cost price will be included in the P & L and also added to the provision for depreciation figure in the BS and as you said, deducted from the price of the pc.

Pauline

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Pauline
Jordan


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I luv this forum smile

Thx for the help, head now unscrambled....till nxt time.

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