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timfa
Joined: 22 Jul 2008
Posts: 2
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| Posted: Tue Jul 22, 2008 9:22 am Post subject: stolen equipment on profit & lost statement |
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| An item was purchased for $2000 and also stolen within 2 weeks, but not set up as an asset so I was just going to write it off. Can I put in an miscellaneous expense account, or should it be handled some other way? No insurance involved. Thanks. |
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areedy
Joined: 25 Jun 2008
Posts: 49
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| Posted: Tue Jul 22, 2008 1:39 pm Post subject: |
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| You do need to set it up as a fixed asset. As you have not had a chance to depreciate it, you have to write off the total cost of $2000 as a Casualty Loss. |
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Ingmar
Joined: 07 Jul 2008
Posts: 32
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| Posted: Thu Jul 24, 2008 7:35 am Post subject: |
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areedy wrote: You do need to set it up as a fixed asset. As you have not had a chance to depreciate it, you have to write off the total cost of $2000 as a Casualty Loss.
Can this be done without any documentation stating the items were indeed proporty of the company, and were indeed stolen?
I am thinking of a report for filing the stolen goods at a policestation or something. |
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areedy
Joined: 25 Jun 2008
Posts: 49
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| Posted: Thu Jul 24, 2008 8:15 am Post subject: |
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Since the item was purchased 2 weeks prior to the theft, there should be a receipt for the item. As far as police report is concerned, i am not sure about that...
Any thoughts anyone? |
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RobJ
Joined: 11 Jun 2008
Posts: 182
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| Posted: Thu Jul 24, 2008 8:16 am Post subject: |
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Ingmar wrote: Can this be done without any documentation stating the items were indeed proporty of the company, and were indeed stolen?
Do you have a receipt for the purchase? If so, are you questioning whether you need "proof" of the theft? Was there insurance? If so, will a claim be filed? |
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Richard Noot
Joined: 20 Aug 2005
Posts: 878
Location: Minnesota
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| Posted: Thu Jul 24, 2008 9:39 am Post subject: |
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| If there was insurance then a claim MUST be filed otherwise it is considered a personal non deductible loss. Proof must be maintained that the item was indeed purchased and paid for. If you do not have a receipt for the purchase I would get a statement from the seller that the item was indeed purchased delivered and paid for. |
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