04 August 2008
hi friends,i am gopal, please help me my querry is:- 340 books of Rs.9,65,649 purchase for library is debited to Library exp (as a revenue exp) but i think that this is wrong account head. What "Books & Periodicals" is correct account head or any other. please reply as soon as. Thanks (in advance) my e-mail id- gopalj7@gmail.com
04 August 2008
1st we must know the what is the nature of the business.Generally, pur of books is debited into books & periodicals. But the case could be different if the business is an educational institute or a training centre or a library. Also, in these cases books may be treated as fixed assets to be w/off over a period of time.
04 August 2008
In case of a library, the purchase of books should be treated as deferred expenditure, to be written off over a period of time. It can not be shown in Purchase as it is not the business of Library to sell the books.
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