Need Help with Household Chart of Accounts

[Michael Hendry]

On 12 Feb 2013, at 14:33, Mark Phillips <mark at phillipsmarketing.biz> wrote:

> Where would I put the money spent purchasing new dishes, a TV, tableware,
> etc.? Would one really create an asset account for these things, or just
> expense them? What would you name the account(s)?
> 
> Thanks,
> 
> Mark
> _______________________________________________

I have a "Repairs and Renewals" expense account, in which I post these items, along with tradesmen's bills. 

If you want to keep tabs on items which still have a substantial value after you've bought them, and need to think about your estate for Inheritance Tax purposes, you might want to have a Fixed Asset account for these, and adjust the values on a regular basis.

If you own your house, for example, you would need to make some kind of estimate of its value from time to time, and your car, your speedboat and your personal jet would come into the Fixed Asset category.

You may also have savings and investments which are regarded as "Current Assets", and which need to be re-valued periodically. It makes sense to keep track of these, as you'll be transferring cash between them and your current bank account from time to time, and this keeps these tidy.

I have a Motoring account, which includes fuel and repairs, but also takes a big hit periodically when I change my car.

It all depends on what you want out of your accounts - if your objective is to keep track of your routine income and expenditure, you should probably avoid the complication of asset accounts (apart from the obvious ones, like your current bank account and savings account).

Michael