VT cashbook question

[ceeci]

Hi All

I use VT Cash Book for accounting for our small ltd company.

Just a couple of questions...

We run cooking classes.

When we purchase ingredients to use for our courses, should this be accounted for under 'cost of sales' and 'purchases' or just under 'expenses - equipment expensed'?

We also buy a fair bit of equipment that we use over and over again. I have put this down as expenses - equipment expensed.

Would this be correct?

Thanks,

Cecilie

 

[MyAccountantOnline]

Hi All

I use VT Cash Book for accounting for our small ltd company.

Just a couple of questions...

We run cooking classes.

When we purchase ingredients to use for our courses, should this be accounted for under 'cost of sales' and 'purchases' or just under 'expenses - equipment expensed'?

We also buy a fair bit of equipment that we use over and over again. I have put this down as expenses - equipment expensed.

Would this be correct?

Thanks,

Cecilie

Hi Cecilie

I am a VT cashbook fan and have many clients using it!

Your ingredients will indeed be cost of sales - purchases.

If you buy new equipment this should go under analysis ledger FA-Equipment and Cost-Additions as the analysis code.

I dont know if your accountant would share my views on this but I tell clients not to worry too much about getting the analysis spot-on the important thing is to post all entries and make sure the bank balance agrees. Minor corrections to posting accounts are really easy to sort out at the year end.