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Whether watch comes under fixed asset in private limited company

19 January 2017

hi all, this is prasad. one of my client purchased a Rolex watch worth of 7L in his private limited company name. can we show that watch under fixed assets in company books??

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6 Replies

ankita gandhi (student) (5908 Points)
Replied 19 January 2017

It's personal asset of your client. Company has no use of this clock even it's too expensive. So u can't show it or even claim it as expense.

Nagendraprasad (ca) (42 Points)
Replied 19 January 2017

thank you mam. It is a medical base company, he is saying that ill use the watch in my lab for checking temperature and saying me to include it. any how tq so much ill discuss same with my auditor.

ankita gandhi (student) (5908 Points)
Replied 19 January 2017

If he is forcing u do it. Auditor will disallow it. But u try your best to convince him it's wrong and disallowed. Even u go and check whether it's really for such purpose so in future for answering to auditor u can make reply.