printer ink is a stationary expense of the business. reduce stock by transfer to stationary.
There's a whole other debate here about the price that should be recorded for the ink. Is it the retail price or cost?
If taken for own use it would be the same as a sale so would be at Market value but as this is for business useage my understanding per UK GAAP is that transfer should be at cost... I think that under IFRS the treatment is as a sale but I need to look that up. (no time at the min but if you want to take a look it will be in IAS18 Revenue).
I'll look it up properly in the morning but I'm not around until tomorrow afternoon so hopefully someone else will pick this up and run with it in the interim.
Invoices with no dates can normally be tracked to the bank statement to confirm that payment has been received however that doesn't necessarily help with which period the invoice should be in.
Even though you should be able to confirm receipt of payment it would be a good idea to get the client to put dates to them. The excercise should also make them less lax in future periods.
HTH.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Invoices with no date on are a menace. I do the bookkeeping for a small fast food takeaway and a lot of the receipts are tore out a book (or they get their dog to chew them out) and often no date on them. Luckily the owner gives me a list of what she's paid out and the date will be on that list. This is ok just now as I get her records every two months - but I was also wondering about the same thing regarding invoices with no dates. These are usually cash payments.
EDIT : Should say I was talking about the suppliers receipts and not the fast food take away. They don't have a dog. I'll refrain from making a joke.
-- Edited by Peasie on Friday 9th of September 2011 02:24:42 PM
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Never buy black socks from a normal shop. They shaft you every time.
Would I record the purchase of the printer ink as normal and then record the stationery so as to cancel out this purchase and at the same time showing that a sale has been lost. I would've thought you would record the stationery as the price you would sell it as, as this is now a lost sale hmmmmm thats got me thinking. Hope to find something on this as no doubt it will come up again!
the rule is that one must not make a profit by selling to oneself which is to stop window dressing the accounts (making the company seem more profitable than it really is).
However, I'm thinking that if you stock an item that you would need to buy anyway then it's just the sale going to you rather than a competitor.
This is a very immaterial item so not worth the time to consider but it's more just a general principle I'm thinking here.
I've taken a look over at what those clever people on accounting web think of this and came up with this thread that tends to support the idea of sale at market value although the scenario is for personal rather than business use.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Isn't the normal bookkeeping entry Dr Stationery (or Dr Drawings if sole trader private use) and Cr Purchases to remove the item at cost from purchases.
If you had bought directly from the supplier for company use, rather than extract stock, it would be at cost price, or have I missed the gist of the question?
