Hi I am doing an AAT Access Award in Accounting Software Level 1 and need help with my assignment which I have set up a company which is a painting and decorating services business. It has asked for CONSUMABLE TOOLS which was bought. i would like to know what nominal code to use, as i am finding it hard to code.
I would like also to know what nominal code to use for LICENCE AND CERTIFICATE as the assessment bank statement it says FP- Licence Institute on the money out column which I need this Licence and Certificate code.
PLEASE ANYONE I need help as this has to be done by this Friday?
As you are star.ting ACCA next week, what statement do you think they should be set up in? Statement of financial position or profit and loss. Then which part of either of those? Have a go on here, does not matter if you get it wrong.
Hi I dont quite understand what you mean Casu, in having a go on what? I am new to this forum never been on one before.
I am putting the payments and receipts from the Statement of account, and FP license Institute is on the money out payments column, but I do not know what nominal code to use for that.
And the one for Licence and Certificate as the only one on my sage is Vehicle Licence and it cannot be that as it vehicles. So stuck on those .
Licence & Certificate could go under professional fees or similarly named. I'm afraid I don't have a Sage chart of accounts in front of me so I can't tell you the actual code number but hope that helps
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
I know they are both items purchased and just thought Licence and certificate would be 7604 Professional fees, As its paying for legal document to have to run the business.
Or premises expense 7803?
Consumable Tools, items bought for the business would it go under some purchases?
you need to slow down and try and work some of this stuff out for yourself first.
In the long run it won't help you if people answer these questions for you. Rather you need to ponder how everything fits together and why things fit where they do.
The bit about nominals is neither here nor there. If you know where things should go in the accounts you will find the nominal that you need for it with whatever software you are using (some software deosn't even use nominals, you have to know where in the COA things fit).
If everything is getting confusing, try reading Business Accounts by David Cox and / or Bookkeeping and accounts by Frank Woods and Shiela Robinson. Having a good understanding of how everything fits together (and why) will ave you a lot of grief later in your studies.
Go slowly, enjoy your studies and you'll go into exams with confidence.
kindewst 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.
Thank you. i have worked out that the items have been purchased and that the consumable tools are items which was bought to use in the business but will probably be replaced as they are not of long life under code 7800 repairs and renewals and change the description to consumable tools. The Licence and Certificate is a professional fee used for legal in the business under 7604.
I hope this is correct with my theory. if not can you please advise?
Don't change repairs to consumable tools. What would happy then when you have r+r? Which you will have as the majority of businesses have. You end up changing alll nominals. You need to create a new one for this one. You don't for licence costs.
What sub category is the 7700 range? Does consumable tools fit in the description?
Agree with Casu re the change in nominal, bad idea fo that one, although sensible for some.
A word on how the site works Jasmin.
You would fair better by thanking everyone who has given you an answer rather than just singling one person out. Also, being a wee bit more patient as Casu suggested as this site is for professional bookkeepers and Accountants who have jobs to do and give their time all for free (and as mentioened, clearly without any kind of thanks on occasion!) and who already respond pretty quickly, but not when badgered!
I have no idea what course you mean by level 2 ACCA, but think you should look at ACCA-X or level 2 AAT before you dive in to the ACCA as you seem, based on your comments, to need some more of the basics first.
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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
