I've sold an item to my business but it's not doing the job. I wish to buy another and reverse this transaction. Can I do so?
I sold a vacuum cleaner to my business when it started in January and created a journal entry for this, with the estimated current value of the item being allocated to the 'owners contribution' account. I would like to now buy an new model for the shop and return this item to my home. How do I reverse this transaction? It was part of my last BAS but as a sale from myself there was no GST so can I just remove it, or is the total value still reflected in the BAS, and therefore it's not able to be changed? If so, would I just create a new journal entry with the item being 'sold' from the business back to mysaelf.
Re: I've sold an item to my business but it's not doing the job. I wish to buy another and revers...
Hi gavrachbrown, it depends a little bit on how you are doing your books. You can theoretically 'reverse' the journal, if that amount is going back to your owners contribution account. My recommendation would be to seek professional advice from an accountant or bookkeeper to ensure that you are being compliant.