Journal entry and depriciation
This query is : Resolved
18 April 2012
A company purchase a fixed assets for rs100000 and received a tempo as a gift what will be journal entry for purchase and depriciation entry on tempo @ 20% p.a
18 April 2012
Fixed Assets A/c 100,000
To Bank A/c 100,000
Tempo A/c Dr.
To Gift from Company
You can not claim depreciation of tempo bcz u did not spend any amount for purchasing tempo.
Tempo RC value is taxable for your business income Under head PGBP of basic charging section 28
To Bank A/c 100,000
Tempo A/c Dr.
To Gift from Company
You can not claim depreciation of tempo bcz u did not spend any amount for purchasing tempo.
Tempo RC value is taxable for your business income Under head PGBP of basic charging section 28
18 April 2012
Disagree with expert. No person will given any benefit free of cost in business. There will be any advantage or benefit behind that.
The gift obtained is not pursuant to the business of the assessee. The offer will be the same for all customers. i.e. the cost of tempo is already included in the fixed asset cost. However, since the same cannot be ascertained, it will be accounted in books at 0 cost.
Entry is
Fixed Asset A/c Dr 100,000
Tempo A/c Dr 0
To Liability A/c 100,000
The tempo will be included in the FA Register of the Company and the same will not be treated as income.
The gift obtained is not pursuant to the business of the assessee. The offer will be the same for all customers. i.e. the cost of tempo is already included in the fixed asset cost. However, since the same cannot be ascertained, it will be accounted in books at 0 cost.
Entry is
Fixed Asset A/c Dr 100,000
Tempo A/c Dr 0
To Liability A/c 100,000
The tempo will be included in the FA Register of the Company and the same will not be treated as income.
18 April 2012
i think for accounting purpose assets must carry some value, therefore it should be recorded at nominal value i.e rs 1
and what about depriciation on tempo
and what about depriciation on tempo
19 April 2012
Not required. It can be accounted at 0 cost. There will not be any depreciation for it.
19 April 2012
thanks a ton ,but then what will be the carriying figure of tempo in balance sheet,and why depriciation sud not be charged
19 April 2012
Carrying amount will be 0. Depreciation cannot be claimed since the cost of the asset is 0.
19 April 2012
sir, what will be situation if the cost of tempo for others were one lakh but we recvd it for free
11 May 2012
Even in such a case, cost of tempo will not be recognised because you have not incurred any expense for it.
You cannot claim benefit of depreciation.
You cannot claim benefit of depreciation.
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Regarding TDS Applicability For Director Remuneration
- FORM 26A APPLICABILITY
- SFT Cash Deposit in Current Account
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
