Purchase of Gold Bullion

Tinajanine

I prepare accounts for a Limited company and the director has purchased gold bullion coins through the limited company. I was thinking that it should be an asset or investment, but would appreciate your thoughts on this please.

davealucas

Depending on the reason why the gold was purchased, it could be stock (if intended for resale asap) or investment (if intended to be held for the purpose of being stored until it increases in value).

Either way, it is most definitely an asset.