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Where Taxpayers and Advisers Meet

Catering Business Hire and sell plates

170872
Posts: 69
Joined: Wed Aug 06, 2008 3:41 pm

Catering Business Hire and sell plates

Postby 170872 » Thu Feb 13, 2020 10:42 am

Hi all, I have a question and would be helpful if someone can shade some light

I have plates both for hire and sales (Nice branded plates)

I would assume the once for hire I would capitalise as Fixed assets and depreciated over the years and the one i plan to sell goes as purchases.

What i don't understand is when the plates breaks and damaged on hiring - how do i account for this as a double entry in my bookkeeping software?
Which plates (hire or the once for selling) do i account for as a closing stock at year end? The damage stock will it reduce the closing stock or the Fixed assets?

Hope someone can help

Thanks

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