Hi Minaxi
Im afraid you cant really lump a drill in with 'any power tools' in this question as for a builder there are huge differences in the bits of kit they need to buy and frankly their lifespan. How much is the drill? What is the useful life of the particular drill? What is their policy on capitalising (have you spoken to the Accountant?)
There have been a few posts on here about this sort of thing in the past, worth having a quick search. I do recall one fairly recently.
Will maybe answer later if I get the time.
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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
How expensive are the power tools individually? Assuming that there are not that many of them just give us the approximate values i.e. 15 * £20 plus 4 * 100 plus 1 * £300
What is the approximate turnover of the business?
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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.
What a surprise, lol. Both of us reply with a barrage of questions.
It's going to end up with the old tools in agregate / materialarity response but geared to the scenario once we get some responses.
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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.
