I've been searching this forum for over an hour in vain, so here's my question. Sole trader, GST-registered.
We've purchased some office furniture and the tax invoice also lists an amount for "delivery/installation", so do we split the allocation similarly to this:
1. Allocate the furniture (incl GST) as an asset purchase with the tax code of CAP (we have a furniture & fixtures at cost account so I thought we'd use that)
2. Allocate the delivery/installation fee (incl GST) as an expense ? We have "postage/freight" but I'm not sure what to do with installation charges.
OR is the cost of rendering the furniture ready for productive use considered part of the cost of that asset? Therefore I just put the total amount in the receipt (incl GST) under my furniture & fixtures CAP account?
PS: I've just read that you need to exclude the GST on the asset allocation and allocate the GST amount separately...yes??
Thanks for your advice and Merry Christmas!
