Accounting concept

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Navneet totla (Querist)
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27 December 2014 sir agar kisi particular assets ke liye fund received hua to iski entry kya hogi or agar or us assets ko purchases kr lete to entry kya hogi

PRADEEP KUMAR VATS

PRADEEP KUMAR VATS (Expert)
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27 December 2014 DEAR

ENTRY WILL BE

1) BANK A/C DR XXX
TO CAPITAL RESERVE XXX
(BEING FUND RECECIVED FOR FA)

2) FIXED ASSETS A/C DR XXX
TO PARTY (FROM WHOM ASSET PURCHASED)XXX
(BEING FIXED ASSET PURCHASED)

REGARDS
PRADEEP KUMAR

Navneet totla

Navneet totla (Querist)
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29 December 2014 thanks sir
sir agar fund govt. se received hua to entry kya hogi ,

PRADEEP KUMAR VATS

PRADEEP KUMAR VATS (Expert)
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29 December 2014 Dear Navneet

According to Accounting standard-12 "Government grants", If any fund is received from government for purchase of Fixed Asset then answer will be

For Non depreciable asset
Bank a/c dr xxx
To Capital reserve xxx

For depreciable asset
bank a/c dr xxx
To Deferred revenue income xxx

Regards
Pradeep Kumar

PRADEEP KUMAR VATS

PRADEEP KUMAR VATS (Expert)
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Navneet totla

Navneet totla (Querist)
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29 December 2014 fixed assets ko nominal value pr show nai krna hoga kya

PRADEEP KUMAR VATS

PRADEEP KUMAR VATS (Expert)
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29 December 2014 Dear Navneet

You are taking about deductive method.

As per As-12, if grant from government received for depreciable assets and you are following deductive method, then you will do like this

Fixed Assets value xxx
Less: grant received xxx
Balance
Less: Depreciation xxx
Balance xxx

Now keep in your mind that if after deduction of grant balace comes out nil or -ve then you will show such fixed assets at nominal value.

Regards
Pradeep Kumar

PRADEEP KUMAR VATS

PRADEEP KUMAR VATS (Expert)
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Navneet totla

Navneet totla (Querist)
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29 December 2014 SIR
FIXED ASSETS KE LIYE GRANT RECEIVED HUI, PHLE KOI FIXED ASSETS NAI HAI US GRANT SE HI FIXED ASSETS PURCHASE KI
FOR EXAMPLE-
BUILDING CONSTRUCTION KE LIYE GOVT SE FUND AAYA OR US FUND SE CONSTRUCTION KRVAYA TO BUILDING KO APNI BOOKS ME SHOW KRE YA NAI

PRADEEP KUMAR VATS

PRADEEP KUMAR VATS (Expert)
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29 December 2014 Dear Navneet

Yes you will show it at nominal value, as you have mentioned in your earlier question that grant will be reduce from Assets.

Regards
Pradeep Kumar

Navneet totla

Navneet totla (Querist)
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29 December 2014 sir to final entry books me yah kr skta hu-

BANK A/C DR.
TO DEFERRED REVENUE INCOME

FIXED ASSETS A/C DR
TO P&l ( NOMINAL VALUE)

EVERY YEAR ME DEPRECIATION KI RATE SE IS DEFERRED REVENU KO W/O IS ENTRY SE KR SKTA HU

DEFERRED REVENUE INCOME A/C DR.
TO P&l

PRADEEP KUMAR VATS

PRADEEP KUMAR VATS (Expert)
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30 December 2014 Dear Navneet

Remember you are following deductive method so you have already reduced the entry grant received from Assets value, then there should be no question of depreciating the grant.

Please check presentation which I mentioned in earlier discussion

Regards
Pradeep kumar

Navneet totla

Navneet totla (Querist)
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30 December 2014 sir me clear nai ho pya
aap muje is transaction ki kya entry krni hog or books me fixed assets show krenge ya nai clear kre
ki govt se building construction liye fund received hu or same year me vo building construction kra di
to aap is all transaction ki entry kya hogi bttye plz

Navneet totla

Navneet totla (Querist)
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30 December 2014 sir me clear nai ho paya
aap muje is transaction ki kya entry krni hogi or books me fixed assets show krnege ya nai clear kre
ki govt. se building construction ke liye fund received hua or same year me vo building construction krva di or sara fund use aa gya
to aap muje plz is trasaction ki kya entry hogi