Accounting entry for a fixed asset
This query is : Resolved
HARSHIT JAIN
(Querist)
14 February 2013
Dear sir,
If a company has purchased a fixed asset as a spare to be used when the principal asset is out of order, when should the company pass the accounting entry for it i.e. debitting the asset a/c & crediting the vendor A/c ?
also tell me that when does the FAR would be updated?
If a company has purchased a fixed asset as a spare to be used when the principal asset is out of order, when should the company pass the accounting entry for it i.e. debitting the asset a/c & crediting the vendor A/c ?
also tell me that when does the FAR would be updated?
CA Parul Saxena
(Expert)
14 February 2013
Fixed Assets Records must be updated as soon as asset has been purchased irrespective of the time of its actual use.Entry should be passed at the time of purchase itself. AS-10 nowhere mention to record the asset when it is to be used. instead it must be recorded at the time of purchase itself.
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HARSHIT JAIN
(Querist)
14 February 2013
Sir,
if a fixed asset has been purhased not being a spare, then on which date it should be reoreded in the books, & from which date depreciation should be charged( i.e. date of capitalization) ?
if a fixed asset has been purhased not being a spare, then on which date it should be reoreded in the books, & from which date depreciation should be charged( i.e. date of capitalization) ?
CA Prashant Gupta
(Expert)
14 February 2013
entry will be taken place when it is purchased
but depreciation will be charged from the date when asset is put to use.
but depreciation will be charged from the date when asset is put to use.
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