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arkvalleyinfo
October 16, 2018
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Are tools I purchase for use in my shop considered inventory?

  • October 16, 2018
  • 1 reply
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I have an auto restoration shop, and purchase tools for use from a local vendor. I want to keep track of these tools for loss and depreciation purposes. How do I enter them when entering a bill from the vendor?

Best answer by Rustler

If your tools are going to be depreciated, then you list them as fixed assets in the chart of accounts, this is normal for high dollar shop equipment.  But a $100 skill saw I would book as an expense.

1 reply

Rustler
RustlerAnswer
October 16, 2018

If your tools are going to be depreciated, then you list them as fixed assets in the chart of accounts, this is normal for high dollar shop equipment.  But a $100 skill saw I would book as an expense.

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    LauriGrace
    June 7, 2019

    Hi. What Expense detail type account would you list a say $250.00 tool as? Thankyou

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