Advance paid and received against Property plant and Equipment
This query is : Resolved
14 June 2025
Advance paid and received against Property plant and equipment ,
how to present it according to scheduled III of company Act.
how to present it according to scheduled III of company Act.
12 August 2025
1. Advance Paid Against PPE (i.e., Advances to Suppliers for PPE)
Where to show: Under Non-current Assets (since PPE is a non-current asset).
Head:
“Capital Advances” (Schedule III classifies this under “Non-current Assets” → “Other Non-current Assets” section).
Explanation:
This is an advance given to vendors/suppliers for purchase/construction of PPE, hence treated as capital advance until asset is received.
2. Advance Received Against PPE (i.e., Advances received from customers for sale of PPE)
Where to show: Under Current Liabilities (since advance received is a liability until the asset is delivered).
Head:
“Other Current Liabilities” (you may disclose separately as “Advance from Customers for PPE Sale”).
Where to show: Under Non-current Assets (since PPE is a non-current asset).
Head:
“Capital Advances” (Schedule III classifies this under “Non-current Assets” → “Other Non-current Assets” section).
Explanation:
This is an advance given to vendors/suppliers for purchase/construction of PPE, hence treated as capital advance until asset is received.
2. Advance Received Against PPE (i.e., Advances received from customers for sale of PPE)
Where to show: Under Current Liabilities (since advance received is a liability until the asset is delivered).
Head:
“Other Current Liabilities” (you may disclose separately as “Advance from Customers for PPE Sale”).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Difference between Date of Payment and Date of Deduction?
- ITDS U/S.194T of Firm
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Unregistered suppliers utility
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- EXPORT COMMERCIAL INVOICE HSN CODE
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- Cash balance limit and property purchases limit
- Non-Compliance documents have not been submitted by the contractors debited
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
