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Thread: Expense account

  1. #1
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    Sep 2011
    South Africa
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    Expense account

    I run a small printing business and I need to know how to use the account categories on certain items in my accounting package. For example I sell 500 business cards for R300 the income category is set to printing. I purchase paper and ink separately. Should I set the cost of this which I can calculate or should I rather leave the cost empty and insert the receipt under my expenses?

  2. #2
    Moderator IanF's Avatar
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    Dec 2007
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    Hi Abdi
    I would suggest you set up your chart of accounts on these lines
    Your sales for the transaction are Print sales R300
    Then when you buy Ink and paper allocate that to the appropriate expense account..
    Only stress when you can change the outcome!

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    Abdi (13-Sep-11)

  4. #3
    Silver Member geraldenek's Avatar
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    Jul 2008
    Somerset West
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    hi abdi

    The ink and paper you use to produce income should go to cost of sales.

    The ink and paper you use to say for eg. print invoices to your customers is an expense.
    Geraldene Kapp
    Professional Tax Help

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