Hi, I need help for making a chart of account for Catering Services.
I'am not familiar on how we account food cost specially spoiled foods.
Hope you can help me

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Originally Posted by regie030

Hi, I need help for making a chart of account for Catering Services.
I'am not familiar on how we account food cost specially spoiled foods.
Hope you can help me

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I would expect such cost to be contained in purchases unless it is that you specifically want to record and account for such spoilage, then you would open a specific account i.e. spoilage and identify and transfer the cost of such items to it.

When desiging a chart of accounts simplicity is important particularly in an industry which is not necessarily oriented to accounting. Sales, purchases are accounts readily understood