Where do I put store uniforms on the financial statements?
Aug 25, 2010 in
Business
Where do I put store uniforms on the financial statements? Are they capitalized as equipment or put in supplies or just expensed? Any help is appreciated. Thanks!
If they are expensed, does it also go to the asset account? If so, does it go to inventories, supplies, or its own uniform account?
If it gets capitalized, does it go to equipment?
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2 comments
aussie sheila on August 25, 2010 at 9:41 pm
expenses
if you list them in expenses (as ‘Uniforms’ ) how can they also be listed in the assets – you can only debit one or the other – they will be credited to whichever account that was used used to pay for them
However on afterthought – if they are basics as in Aprons (which could be classed as protective clothing) – that can be passed onto other employees (as opposed to shirts etc. – then may be able to list them as assets – but unless you buy heaps of them for a large amount (say over app. $300) then would not think it would be worth it to place them there.
If still unsure ask your accountant.
As a bookkeeper for a company that supplies uniform shirts to it’s employees (only 3) I list them under Uniforms expense category
Mo Fayed on August 25, 2010 at 9:41 pm
I would put them down as capital assets, and include a high percentage figure on them for depreciation.
If you sold the shop you would leave the uniforms with it. If you get the uniforms back off leaving employees, or keep the worn out ones when replacing them in order to prove you are not just giving out a clothing allowance as a ‘perk’, then I can’t see the tax-man arguing.