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Business purchasing stock off Private Sellers

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I was trying to get my head around what would be an appropriate way of accounting for this business...

LTD Company, under the VAT Treshold who's trade involves buying electronics and reselling on ebay with a mark-up. 

All electronics are checked on Checkmend and details of the seller are kept for due dilligence reasons, but as some stock is purchased from Gumtree / Facebook market place using cash, no invoice is received (as expected from a private sale).

Would a log containing the sellers name, address, description, date and cost price be sufficient to claim as a cost of sale?

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RLI
By lionofludesch
17th May 2020 06:48

Just keep what records you can and beware of anything that might be stolen. The second hand market can be a dangerous trade.

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By Cheshire
17th May 2020 09:16

Quote:

I was trying to get my head around what would be an appropriate way of accounting for this business...

LTD Company, under the VAT Treshold who's trade involves buying electronics and reselling on ebay with a mark-up. 

All electronics are checked on Checkmend and details of the seller are kept for due dilligence reasons, but as some stock is purchased from Gumtree / Facebook market place using cash, no invoice is received (as expected from a private sale).

Would a log containing the sellers name, address, description, date and cost price be sufficient to claim as a cost of sale?

So the only thing you are not keeping is a copy of the advert? Bonkers

Why are you paying cash when using such market places? I thought that was not encouraged and surely not helping your argument for record keeping? Double bonkers

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Hallerud at Easter
By DJKL
17th May 2020 11:40

Duplicate receipt pads may be the way to go, ideally pre numbered and printed with buyer's business details, buyer then hands copy to party he/she buys from and duplicate remains in book as record of his/her "cash" purchases to assist writing up records- pre numbered reduces chances of inadvertent omission, always the risk with cash transactions.

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