What account to use ?

[Fontorbe]

Good morning,
We organise daily trips with visitors to the mountain.
We cook the meals and we also buy some meals from a restaurant to take with us and to serve to our visitors during the trip.

How would you register this : as an expense or cost of good sold ?

Thank you for your help,

 

[Fontorbe]

Good morning,
We organise daily trips with visitors to the mountain.
We cook the meals and we also buy some meals from a restaurant to take with us and to serve to our visitors during the trip.

How should I register this : as an expense or cost of good sold ?

How about the fuel in the truck : Is it a cost of good sold as well ?

Thank you for your help.

 

[Fidget]

You don't really have a cost of goods sold. I could argue this either way though - either treat all of your expenses as cost of sales, or treat all of the expenses as overheads. Either way, it doesn't really matter.