Fixed asset accounting
This query is : Resolved
16 February 2014
Dear Sir/s,
i want to know what treatment we have to give to cash discount received on FIXED ASSET ?
i mean we have to record the cash discount as income ? , if yes then the FIXED ASSET to be recorded at total value (net payable to supplier plus cash discount), if not then which account we have to debit for cash discount received ?
rgds
parvez
i want to know what treatment we have to give to cash discount received on FIXED ASSET ?
i mean we have to record the cash discount as income ? , if yes then the FIXED ASSET to be recorded at total value (net payable to supplier plus cash discount), if not then which account we have to debit for cash discount received ?
rgds
parvez
16 February 2014
Fixed Assets to be recorded at net payable amount.
Message likes :
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16 February 2014
thanks again,
but can you tell me what account we have to debit for the discount earner ?
but can you tell me what account we have to debit for the discount earner ?
16 February 2014
For example you are purchasing Fixed Asset from X. Price Rs 100, Discount @ 10% i.e., Rs 10. Net amount paid by you is Rs 90/-.
Entry Will be-
Fixed Assets A/c Dr Rs 90
To X A/c Rs 90
Entry Will be-
Fixed Assets A/c Dr Rs 90
To X A/c Rs 90
17 February 2014
but if we have already booked invoice for Rs 100 and after 2 weeks we received cash discount from vendor , what to do ?
17 February 2014
If received later.
Cash/Bank A/c Dr.
To Fixed Assets A/c
Cash/Bank A/c Dr.
To Fixed Assets A/c
17 February 2014
If payment has not been made, debit x (seller) account.
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