How to account for supplies you use for personal use?

[hmlove1218]

If this makes any sense, how do you cover supplies you use for personal uses? For instance, you make yourself a sugar scrub using ingredients that were bought for business. Do you pay yourself retail? Cost of supplies? Or do you simply mark it as some kind of expense? I've been usually paying myself the cost of supplies. How are you supposed to do it or how do you do it?

 

[coffeetime]

I just sell it to the 'test batch' account I made up in Soapmaker3. For $0.00. I'm operating under a sole proprietorship in Canada so that's all I have to do.

 

[wetshavingproducts]

Not an accountant, but I've done a lot of research about deductions.

For personal items, you may not take a deduction for items used for personal use.

What that means is if an item costs $5, you would deduct $5 from your income if it's part of the COGS. If you used $1 of the supplies for personal use, then you only deduct $4.

If you used it for R&D purposes, you deduct it for a different reason. So it'd be $4 COGS, $1 R&D.

That said, you can do what you will with this information.