For a second hand car dealer I have been allocating repairs and servicing that they do on cars they buy to sell to 7301. Should I instead have a new nominal 5004 which I call servicing and repairs instead? Should I reserve 7301 for repairs and servicing of their own property/cars etc although they don't have any company cars as they use the ones they buy to sell on.
What do you think?
-- Edited by rachael-pink on Thursday 5th of September 2013 02:22:01 PM
The cost is incurred in order to sell the vehicle so should be in 5000's. If the cost is for maintaining their own vehicles used by the business, then 7000's.
Hope this helps.
