How do I enter stock and equipment from a competitor who is closing down.


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If this was me I would be talking to my accountant as to how these items should be valued (and hence recorded). Rationale being that there could be taxation implications - particular the equipment which will presumably attract depeciation
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Thanks Bruce, I do understand those implications but not sure how reckon will be implicated etc.0
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I would record the equipment as "plant & equipment:cost" or similar. If you run your depreciation from a spreadsheet then this can just be a bulk entry.
I'll let somebody else advise in relation to the stock issues - I only have limited experience with stock, valuing COGS etc.0 -
Hi Gillian
Trading Stock doesn’t attract depreciation so you can enter this as you normally would for any other stock purchase.
The 30K instant asset write-off threshold for depreciation was increased (for eligible small businesses – check your specific business’s eligibility) to 150K for purchases made from 12/03/20 so if your business is eligible & the net equipment cost was below that, the equipment amount can be expensed (claimed) in full.
If it was over 150K, I would enter it as CAG/CAF to an Asset account for depreciation pooling at EOFY. Which Asset account you use for this depends on your Chart of Accounts setup - if you have an SBE Pool Asset account, allocate it to there a specific P&E Asset - or “Cost” subaccount – is fine.
Don’t forget to include a detailed description on the transaction(s) for your tax agent at EOFY.
Shaz Hughes Dip(Fin) ACQ NSW, MICB
Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)
Accounted 4 Bookkeeping Services
Ballajura, WA
0422 886 003
Shaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***
* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *
Accounted 4 Bookkeeping Services
Ballajura, WA
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