Fixed asset accounting
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 April 2016
What if fixed asset is received free of cost by say, a partnership firm and accounting standards are applicable to it.
How would be this transaction accounted..?
10 April 2016
You have to book the fixed asset market value as on the date of received, debit fixed asset and credit to reserve account under capital
10 April 2016
we cannot book it as nominal value say Rs.100 as debiting Asset and crediting the capital reserve as per AS 12.?
Message likes :
1 times
11 April 2016
No.,actually you have to book the market value, it is also required incase you claiming depreciation on that assets i, books
11 April 2016
OK but can we claim depreciation on market value ?
As per sec 43(1) of IT act,1961
11 April 2016
depreciation can be claim only on actual cost of acquisition of asset..
11 April 2016
The asset received free of cost need to book the fair market value as on the date which received and the credit the reserve account and depreciate the same with debiting the reserve account over the useful life of the asset
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
- Reopen of assessment proceeding
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- Management System (IMS)
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- EPF FULL & FINAL RULES IN 2026
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- 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
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
