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Chart of Accounts help

Discussion in 'Accounts & Finance' started by cyberdog, Feb 8, 2009.

  1. cyberdog

    cyberdog UKBF Regular Free Member

    Posts: 44 Likes: 0
    Hi,
    I have just started using Microsoft Office Accounting Express 2008, and have a general accounting question.
    When I purchase an item for use by the business what category do I enter it into under the chart of accounts section?
    Thanks
  2. dp0848

    dp0848 UKBF Regular Free Member

    Posts: 2,630 Likes: 1,016
    You need to enter the expenses against the appropriate nominal code e.g. if you've paid rent for your business premises code it to the rent account etc.
  3. CassioAcc

    CassioAcc UKBF Regular Free Member

    Posts: 960 Likes: 237
    Unless it is an Asset.
  4. dp0848

    dp0848 UKBF Regular Free Member

    Posts: 2,630 Likes: 1,016
    Good point Aaron. If the purchase is a capital items costing more than £300 then it should be coded to fixed assets and depreciated over its useful life.
  5. cyberdog

    cyberdog UKBF Regular Free Member

    Posts: 44 Likes: 0
    So, say i have bought a couple of small items, like a pen drive and some software. Both items are less than £300, so what would i put them against??
  6. CassioAcc

    CassioAcc UKBF Regular Free Member

    Posts: 960 Likes: 237
    Put them to an expense account. It depends what you have set up on your Chart of Accounts but select an expense account that best describes the type of expenditure.
  7. cyberdog

    cyberdog UKBF Regular Free Member

    Posts: 44 Likes: 0
    Much appreciated.