My 1st Client!

mastrypuncher

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.

PGM

So the 600 is going to be starting capital for a seperate business?

mastrypuncher

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

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?