Purchase order

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Madhav Krishna

Madhav Krishna (Querist)
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23 January 2017 What is the difference between Purchase Order raised for Material purchase and Asset purchase?

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay (Expert)
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25 January 2017 There is no difference in the Purchase order raised for material purchase and asset purchase. The difference is in the accounting treatment in the books. Material purchase is considered as revenue nature and asset purchase is considered as capital nature.