Entry for lost by fire of an item
This query is : Resolved
Vijay Mishra
(Querist)
21 November 2011
Dear All,
I have a confusion regarding entry and need ur suggestions. We had a machinery in our private limited company. It was not insured & the same was fully burnt by fire on 15th November. Now how should we make this entry in our books of accounts. The machinery was purchased before 1st April 2011.
Its urgent. Looking forward for your quicker reply.
Thanks & regards,
Vijay
I have a confusion regarding entry and need ur suggestions. We had a machinery in our private limited company. It was not insured & the same was fully burnt by fire on 15th November. Now how should we make this entry in our books of accounts. The machinery was purchased before 1st April 2011.
Its urgent. Looking forward for your quicker reply.
Thanks & regards,
Vijay
CA SUMiT PATWARi
(Expert)
21 November 2011
Loss by fire (Abnormal loss) Dr.
To, Fixed Asset A/c (WDV after providing for depreciation upto 15 Nov 2011)
An appropriate disclosure in notes to accounts and directors report may be required, if the loss constitutes a good(relativity concept) amount.
The auditors need to give a positive comment on the going concern objective of the organisation in their CARO report.
To, Fixed Asset A/c (WDV after providing for depreciation upto 15 Nov 2011)
An appropriate disclosure in notes to accounts and directors report may be required, if the loss constitutes a good(relativity concept) amount.
The auditors need to give a positive comment on the going concern objective of the organisation in their CARO report.
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