A builder has just bought a mechanical concrete breaking up tool for £340. In Sage would this be posted to nominal code 0020 Plant & Machinery or 7800 Repairs & Renewals please? Its not a tool he's replacing. Many thanks in advance
The question is should you capitalise or expense it. Ive used one of these, but thats an aside. lol on the name of the kit by the way. At what level do you normally capitalise items? Mostly it does depend on the type and nature of the business. If you decide to expense it then I would probably open a nominal for 'small tools' rather than R&R.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Thank you for your reply. Well he doesn't normally buy large tools you see, he hires them in. So I've not actually had to code any previously. It'll be something that depreciates though won't it which makes me think I should put it in plant & machinery, but then it's a one off smallish purchase that doesn't really occur ever making me think I should do like you say and create a new small tools code. If I pick wrong the accountant will soon put it where they want it I'm sure
Hi
(Can you please add your name to the signature section, otherwise I have to call you Pickle!)
As it a large amount for his business and as you are leaving up to the Accountant I would put it in the Fixed Assets code you already have - he is more likely to spot it there in case you forget to add it to your list of queries at the year end.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Agreed with Jo. I'd put it to Plant & Machinery as the accountant, and if I was the bookkeeper, I would do the same so the accountant could spot it easily.
