Hi
I was wondering how other people treated brochure stocks.
We're not talking about massive amounts (value only £1030) but should the brochures still in stock at the year-end be included in closing stock or should the whole amount go in to advertising and then prepaid by however many months at the year-end?
Thanks for any replies.
Mrs J
Replies (2)
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Prepayment
Being able to sell the asset at a later date is not one of the conditions that I use in calculating prepayments.
I would enter a prepayment against printing costs if the balance left was over £200.
Expense them
If it helps, I expense the brochures against printing costs on the basis that the amounts are trivial and I cannot resell them to anybody. (They are given away free). In essence, they are no different to buying 50 reams of A4 paper. It's so trivial that I wouldn't even prepay them.