26 April 2020
I have an accounting problem. During FY2019-20, a party had purchased a new motorcar for Rs.11 lakhs in the month of Nov. 19 and paid full amount for the motor car as per bill of Kataria Automobiles. After taking delivery, Kararia Automobiles returns Rs.7000/- to the party without issuing any invoice for Rs.7000/- only direct credit to party's bank account, after one month. Now what treatment in accounting must be take?? The motor car value be (Rs.11 lakhs less Rs.7000/-) Rs.10,93,000/- for depreciation or Rs.11 lakhs? Rs.7000/- as income/Discount received? There is no documents available for Rs.7000/- only bank statement showing Rs.7000/- directly credited through NEFT. Please advice on the correct accounting actions?
27 April 2020
Ask supporting Documents , if it is discount subsequent to sale invoice , it's better reduce value of vehicle since discount amount to capital expenditure.
Depreciation to be worked on net adjusted value of asset.
CAclubindia
