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Where do delivery charges of tools needed for business go?

  • 23 posts
  • # 102551

Hello everyone,

I have just started doing books for my husband who is a self-employed tradesman and I am in a pickle. A lot of his tools were ordered online and hence he paid for those to be delivered. I have entered the tools prices onto the spreadsheet but what do I do with the postage charges? do I open another account in the expenses section called : Delivery charges?

I am sure I dealt with this issue while studying my course materials but I simply cannot remember. I would be grateful for any advice!!

Thanks a bunch!

  • Kind regards,

    Alex


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  • 794 posts
  • # 102554

Hi Alex,

Normally carriage charges are shown separately alongside the 'cost of sales' purchases however,

if the tools are of a value where they are deemed assets to the business then the carriage charges would be included with the cost of tools.

So if they are small items of say under £250 then put the delivery under 'carriage charges' or over £250 include them in the asset cost.

Marilyn

  • A clever person solves a problem.

    A wise person avoids it.

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