Theatre Lights - Not suitable

Les79

fewgroats wrote: »

Could something be made from the fact it wasn't the theatre's money? Maybe if it came from one individual you could say they purchased the lights?

Well, what do the company accounts reflect it as?

I have a fairly limited knowledge of accounting (AAT basic level) but a LTD company gaining an "asset" needs to have a corresponding record in the company accounts to offset it.

Examples include:

- One of the shareholders* providing capital (ie a shareholder* used their own money to buy the item; are you a shareholder*?) to the business for purchase of an asset.

- The company using their cash in the bank to purchase an asset (by asking a third party/you to purchase it and then reimbursing you at a later date).

Either that or you gifted the theatre a set of lights? That would in itself bring a different set of challenges, and would be somewhat far-fetched in your specific case.

*I say shareholder but in reality I'm not 100% if this is the correct terminology, but I effectively mean anyone who can pump money into the business as the owner.

ThumbRemote

andrewg112 wrote: »

Ah, thanks for that. I will need to check that out. We are a community organisation but a LTD company. Im sure thats not going to be helpful !!

If the lights were paid for by the limited company (eg using the company credit card) then it's a business purchase.

If they were bought by an individual using their own credit card, with the intention of being reimbursed later by the organisation, then you may be able to claim it's a private consumer purchase. Not sure how far you'll get with this, but it's your only hope of claiming consumer rather than business rights.

andrewg112

Thanks for all of your replies.

Yes - specs were looked at and technically speaking this product should be more than suitable for us.

These have been purchased as a LTD company ...

We have suggested the rep comes to visit us and bring a few other lamps, as these are sold separately it could be that the wrong items were supplied or incorrectly labeled.

Thanks,
Andrew