Fixed asset
This query is : Resolved
Jishnu Surendran
(Querist)
05 April 2013
Consider the situation
1 ) Purchase order for 2 Motor Pumps 12/11/2011
1.5 Yen/ Re.
2 ) Supplier Acknowledged...Invoice Date 26/12/2011 20000 Yen at 10000 each...1.7/ Re.
3 ) Despatch Date 27/12/2011 1.85 Yen/ Re.
4 ) First Payment Date 27/02/2011...paid 10000 Yen at 2 Yen/ Re...price of once pump...both of them still in transit...
5 ) Customs and VAT clearance 26/06/2011...2.25 Yen/ Re.
6 ) Reached Factory 30/06/2011....2.5 Yen/ Re.
When should I capitalise the asset and at what values ?
I have done this.....
1 ) Capitalise both the assets on the date it reached the factory...
2 ) Value of the pump for which the price is paid before it reaches the factory is value at cash value...that is the amount paid..
3 ) Value of the second pump for which the price is still payable is valued using the exchange rate on the date it reached the factory....
1 ) Purchase order for 2 Motor Pumps 12/11/2011
1.5 Yen/ Re.
2 ) Supplier Acknowledged...Invoice Date 26/12/2011 20000 Yen at 10000 each...1.7/ Re.
3 ) Despatch Date 27/12/2011 1.85 Yen/ Re.
4 ) First Payment Date 27/02/2011...paid 10000 Yen at 2 Yen/ Re...price of once pump...both of them still in transit...
5 ) Customs and VAT clearance 26/06/2011...2.25 Yen/ Re.
6 ) Reached Factory 30/06/2011....2.5 Yen/ Re.
When should I capitalise the asset and at what values ?
I have done this.....
1 ) Capitalise both the assets on the date it reached the factory...
2 ) Value of the pump for which the price is paid before it reaches the factory is value at cash value...that is the amount paid..
3 ) Value of the second pump for which the price is still payable is valued using the exchange rate on the date it reached the factory....
27 May 2013
You have rightly done it but if there is any rate difference then the same is to be booked on the date of payment.
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