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Stolen item - how to account for it

Need some help here:

We hired an electric bike which was subsequently stolen & not covered by insurance. So we have to pay the bike shop £5,000!

Is this processed in the accounts as an expense, just as any other expense would be?

TIA Dave

Hi @dmarti32

I would assume this would be the case, you may need to check with your accountant if there is another way you should account for it

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Hi,

if the bike wasn’t leased but simply hired for a short while, then I’d expense the 5,000.

You could debit code 7700 Equipment Hire with 5,000

image

And credit the bank account with 5,000 when you make the payment.

Hope this helps :slight_smile:

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