Home For accounting professionals General accounting discussion

My 1st Client!

mastrypunchermastrypuncher Settling In NicelyRegistered Posts: 19
Am doing some book keeping for a Builder friend of mine. He sold some old second hand tools he didnt need anymore to raise some starting capital but has no paper work either relating to when he bought them, or the sale of them. Is paperwork critical when accounting for these cash deposits as starting capital? Its not a large amount of cash. Just over £600.

Comments

  • PGMPGM Font Of All Knowledge Registered Posts: 1,954
    So the 600 is going to be starting capital for a seperate business?
  • mastrypunchermastrypuncher Settling In Nicely Registered Posts: 19
    Yes that's correct. Up until the beginning of March he was contracting under CIS scheme but when that contract finished he decided to start up on his own.
  • PGMPGM Font Of All Knowledge Registered Posts: 1,954
    I don't think you need to account for the 600 as startup, its just capital investment.

    Although it should be accounted for as a disposal of capital equipment?
Sign In or Register to comment.