Pending capital advance received and paid
This query is : Resolved
28 December 2011
sir / madam
please tell me the treatment of capital advance paid and received in case of purchase of fixed assets in tax and accouts.
please tell me the treatment of capital advance paid and received in case of purchase of fixed assets in tax and accouts.
28 December 2011
The advance paid will reflect in the balance sheet under the head loans and advances.
Depreciation will not be allowed on such advance.
In the year in which the asset is actually received, advance will be adjusted at the time of final payment.
In that year depreciation will be allowed on the total cost of the asset.
Advance received shall be reflected as advance in the Balance Sheet.
It will be treated as income in the year in which you deliver the asset.
Depreciation will not be allowed on such advance.
In the year in which the asset is actually received, advance will be adjusted at the time of final payment.
In that year depreciation will be allowed on the total cost of the asset.
Advance received shall be reflected as advance in the Balance Sheet.
It will be treated as income in the year in which you deliver the asset.
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