Hi, My business is a partnership and is involved in retail sales of products. My partner has used some of the products for demonstration purposes. How do I record this in the Journal ?
In general we split the costs of all the inventory when it is purchased. My partner feels it is unfair to charge me with products he uses for business purposes and visa versa.
Any help is appreciated.
wrote
If it's withdrawn for real honest to God business use, it should be a cost of goods sold item (you can break it out to another expense category if you like, with no impact to the bottom line). What ever the split is between the two of you on partnership profits and losses is the split. In this case there isn't any real reason to adjust the expenses to the various partners.
Unlike withdrawals for personal use.
Have something to add? Share your thoughts — no account required.
Ask the community — no account required