Forum

topBanner
First Previous - Page 1 of 1 - Next Last

To capitalise or not to capitalise?

gigagirl
  • 220 posts
  • # 76239

That is the question.

I have a new client, sole trader, just putting his start-up costs and general books onto Sage.  He only started trading in April, but incorporated 2 weeks ago, so I'm organising all the S/E bits and pieces.  Turnover for the period was about £30K.  Has bought a few small hand tools, and 2 drills costing £399 each.  Not sure whether to capitalise the drills or not.  Any opinions would be appreciated?
Thanks guys and girls.
kjmcculloch
  • 1159 posts
  • # 76240

For that size of business I would capitalise items costing over £100 and likely to last over the year.

In that case, my answer would be yes.  But then I've just taken over a client where there previous accountant capitalised a mobile phone costing less than £30 and depreciated it at £2 a year, so everyones different.

Kris 
gigagirl
  • 220 posts
  • # 76243

Thanks Kris, that's along the lines of what I was thinking.  Just phoned my friendly accountant too - and she said to capitalise it. 
First Previous - Page 1 of 1 - Next Last
bottomBanner
loading