My 1st Client!

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mastrypuncher
mastrypuncher Registered Posts: 19 New contributor 🐸
in General accounting discussion
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.

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  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
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    So the 600 is going to be starting capital for a seperate business?
  • mastrypuncher
    mastrypuncher Registered Posts: 19 New contributor 🐸
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    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.
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
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    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?

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