start up of new business

sassyduell

Hi all
Could anyone tell me if i am doing the books for a new business set up whose start up date is going to be 6/4/2010 but she is going to buy equipment etc for the business in the month running up to that date, how will i record those initial start up cost, should i put it through in the financial year it was bought?

Monsoon

sassyduell wrote: »

Hi all
Could anyone tell me if i am doing the books for a new business set up whose start up date is going to be 6/4/2010 but she is going to buy equipment etc for the business in the month running up to that date, how will i record those initial start up cost, should i put it through in the financial year it was bought?

Put it in as at the first date of trading, i.e 06/04/2010. It is pre-trading expenditure.

sassyduell

Thank you very much for that