Accounting treatment of live stock
This query is : Resolved
29 May 2017
what is the accounting treatment for recording live stock received at free of cost by "Gaurakshan Sansthan" (charitable trust) ?
30 May 2017
Debit the live stock ac and credit Donation ac based on the market value of live stock. Live stocks has to be valued at the year end, any reduction in value has to be charged to P&L.
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30 May 2017
thanks sir,
whether live stock (cows) are fixed asset or not?
what is the criteria to determine it?
what about depreciation? at what rate?
whether live stock (cows) are fixed asset or not?
what is the criteria to determine it?
what about depreciation? at what rate?
30 May 2017
Livestock is treated as fixed assets, but not depreciable, shown at historical cost or market value which ever less at the year end closing date.
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31 May 2017
whether Shed to such cows is fixed asset or should be charged to P&L as expense...
if it is a depreciable asset, then at what rate depreciation should be taken ? @10%?
if it is a depreciable asset, then at what rate depreciation should be taken ? @10%?
31 May 2017
It is a fixed asset charge depreciation over the life of the asset.
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31 May 2017
by crediting donation a/c & debiting live stock (cows)... It increases my profit by the donation amount.. !??
01 June 2017
Yes it increases your profit. But while working out the application of funds for tax working it is reduced from the profit as money spent under live stock head.
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