Your accountant is right.Hi Brendan, thanks for the reply. To confirm I should only be paying corporation tax on the funds remaining? Ie €18k?. Reason I ask is my current accountant believes I should be paying corporation tax on the full €50k?
Thanks again
It's one or the other. Can't be both.Thought it would have be deemed an asset to the company, but also an expense.
It's one or the other. Can't be both.
I'd suggest you leave the accounting & tax to your accountant.
Doesn't seem right
If you purchase stock, does it not enter directly to your inventory (a Balance sheet account)?
It only becomes a P & L item when you sell the stock and the cost is transferred to a Cost of Sales account?
I think in the context of the OPs question, if we look at the net position, are we agreed that there's a net Zero in his 'expenses', and he has an asset on his balance sheet at year end?Actually, it is both!
I think in the context of the OPs question, if we look at the net position, are we agreed that there's a net Zero in his 'expenses', and he has an asset on his balance sheet at year end?
There are different ways of doing the book keeping, but the net effect is the same.
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