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Purchase Categories - Carpets/Paint

Hi - On settng up my new business we bought carpets for our rooms. What category would these go down as ?

The same question for paint and interior finishes ?

Thanks,

Nick…

Hi Nick,
I would say that the replacement of the carpet is an asset (Fixtures and Equipment) as it has a fairly long life expectancy and is also a significant cost to the business. It depends a bit on how much you paid.
You can post it to office furniture or create a new one.

I am sure that others may argue that it could be a repair or renewal as it was a replacement for what was previoulsy there.

The paint I would post to maintenance and your little finishes to repair or maintenance as well.

If those nominal accounts are not in your quickfile account you can easily create these accounts:

I am not an accountant and you should always ask one. Your accountant knows your books and there could be little things which influence the choice of the right nominal account.

OK many thanks,I think I wil use repairs and renewal as the carpet was under £150. I tend to class anything under £150 as a non asset. And those item,s like PC’s etc as office equipment asset.