Hi, I have a heading 'Repair' on my profit and loss account. So if I had an iPad repair, should I post it under Repair or under Computer Equipment? I thought the latter would be 'cleaner', keeping all such expenses together but have a feeling that's not correct. Is it that Computer Equipment can have depreciation so that's why they are separate on Solar?
Hi Gill,
Yes "Computer Equipment" is an asset account and Repair should be an expense. Since the repair costs (coupled with the original damage) don't affect the value of the iPad you should allocate the cost to the expense account - ie. to the Repair account.
Regards,
