accounting entry

Save Share

This query is : Resolved

Student (Querist)
Follow

17 August 2010 hello,
When an asset is bought for Rs 100000 + vat 12.5% (pls confirm this rate) then what is the accounting entry in tally. pls mention groups for the ledgers to be created.

thanks
kirti.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

17 August 2010 As per AS-10 , the fixed asset need to capitalise the Asset value plus the non refundable taxes and duites. So if you can take the VAT on capital goods then the VAT portion cannot be added to fixed asset, if you are not taking VAT on Capital goods then you can add the VAT value to the asset

Student

Student (Querist)
Follow

17 August 2010 Your 2nd line says Vat cannot be added. Then 3rd line says it can be added.
pls mention the accounting entry.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

17 August 2010 If your VAT act allows take input credit on capital goods you no need to add the VAT value to the goods, otherwise you need to add to fixed asset

Message likes : 1 times

Student

Student (Querist)
Follow

18 August 2010 understood....thank you!!

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now