Query regarding creation of proper Account Heads
This query is : Resolved
Guest
Guest
(Querist)
27 December 2010
Dear Friends & Experts,
A, an individual having a automobile workshop.
A used to buy the following items :
1. Purchase of kerosene
2. Purchase of Soap oil and brush
3. Purchase of Spares
4. Purchase of Waste cotton
5. Purchase of Hardware Materials
(Brush,Paste)
What is the appropriate account head for the above items ?
I shall wait for the replies.
Thanks.
DK.
A, an individual having a automobile workshop.
A used to buy the following items :
1. Purchase of kerosene
2. Purchase of Soap oil and brush
3. Purchase of Spares
4. Purchase of Waste cotton
5. Purchase of Hardware Materials
(Brush,Paste)
What is the appropriate account head for the above items ?
I shall wait for the replies.
Thanks.
DK.
27 December 2010
a/s stock
give some material code to all , and keep a stock register.
give some material code to all , and keep a stock register.
Guest
Guest
(Querist)
27 December 2010
Thank you for your response.
It may be noted that in the above workshop business, when they get a VEHICLE for Servicing / Repair, that time only they purchase the necessary items (as given above) for that vehicle based on the requirement for that vehicle only.
In short, the purchases are purely based on 'per vehicle'.
Hence, the above workshop will never have any stock of materials in hand.
Can you consider the above facts and advise me suitably ?
It may be noted that in the above workshop business, when they get a VEHICLE for Servicing / Repair, that time only they purchase the necessary items (as given above) for that vehicle based on the requirement for that vehicle only.
In short, the purchases are purely based on 'per vehicle'.
Hence, the above workshop will never have any stock of materials in hand.
Can you consider the above facts and advise me suitably ?
CA Anisha Ray
(Expert)
28 December 2010
You can account for it as Purchase Consummables, and expense it out since it is directly related to the service that is provided.
if anything is purchased in bulk and used for service as and when the need arises you will have to keep a stock register and whenever something is used it will be treated as expense.
if anything is purchased in bulk and used for service as and when the need arises you will have to keep a stock register and whenever something is used it will be treated as expense.
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