30 March 2011
If a calf say 10 months old is valued at Rs 3000 on balance sheet date and capital account is credited with 3000. Then can we take the calf as fixed asset kowing the fact that it is not generating any income. Please do reply. Thanks
if the calf in question has been purchased for business use and not for resale, then it should b classified as fixed asset. if it has been purchased for resale, then it should b classified as stock in trade.
CAclubindia
