What would a decor purchase come under - pictures etc. TIA.
Also, as childminder I buy lots of things that go towards making learning resources for the children. Does this come under General Purchases?
It’s not really a “General Purchase” as this code is used for those items that are consumed on a short term basis to generate profit for your business (i.e. a cost of sale).
If they have material value (typically £100) and several years of useful life, you could treat them as an asset (e.g. office equipment).
Otherwise it would need to be expensed, if that’s the case it’s better to create a new nominal code under the expense category and post it there.
Disclaimer: I’m not an accountant so would also recommend seeking a professional opinion.
Most accountants will say that anything under a certain amount can just be posted as a general purchase, this amount will differ between accountants but generally anything from £1-300 is used as a cut-off. Above that you would usually enter it as an asset.
Thank you both for your answers. Much appreciated.