Fixed asset capitalisation
This query is : Resolved
atul Vivek puranik
(Querist)
01 January 2019
Hi,
I have purchased Plant & machinery in Apr.18.(27.04.18) but bill is received in Jun.18.As bill is received in Jun.18 it is capitalized in books in Jun. input GST credit is taken in June & also tax is deducted in Jun and paid in July on installation charges.
Now to avoid capitalization & depreciation implication, can i make such entry in Fixed asset register in Apr.18 instead of Jun ? without changing in books of accounts to calculate and charge depreciation correctly in books?
I have purchased Plant & machinery in Apr.18.(27.04.18) but bill is received in Jun.18.As bill is received in Jun.18 it is capitalized in books in Jun. input GST credit is taken in June & also tax is deducted in Jun and paid in July on installation charges.
Now to avoid capitalization & depreciation implication, can i make such entry in Fixed asset register in Apr.18 instead of Jun ? without changing in books of accounts to calculate and charge depreciation correctly in books?
KAVIRAJA ADDANGADI
(Expert)
01 January 2019
you can book purchase Machinery as on Bill date i.e.. April take ITC on June .
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