I work for a company that leases and sells printers. I understand that rental stock should be held as a fixed asset, and that sales stock should be held as stock. However, what classification should we use for 'stock' that is purchased with the intention for it to be used for either purpose equally? Stock was purchased to take advantage of discount and so final destination is unknown at this point.
Many thanks
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prudence concept - with this in mind i would suggest keeping this as current asset, DR stock CR closing stock. This way there is no issue with the capital allowances being claimed on the assets. you should also ensure that the nbv of the assets held on bs is monitored closely.
if you're just a bookkeeper or accounts person in the firm, I would make sure that this question is included in the notes to the accountancy firm that will be preparing the final accounts and ct600.
Note - you shouldn't post anonymously. it's not a confidential matter in mho