I have my own limited company and I have just bought a printer for R2500. This is my first asset purchase through my limited company so I'm not too sure what to do. I am aware that SARS allows you to write this off in the year of purchase as a wear and tear allowance because the purchase amount is less than R7000. However I am unsure of how to handle this in my accounting software. Do I create a non-current asset account for this purchase and then debit my wear and tear expense account or can I create an expense account just for the printer and expense it immediately? Please could someone enlighten me as to what the relevant journal entries would be to immediately write off an asset purchase of less than R7000?
Any help would be much appreciated.