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Personal assets of director in books of company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2013 MrA director of ABC Ltd. buys a wrist watch (imported costing 8-9 lac)in his own name and makes payment for the same from the company and records it in books of accounts of the company and does not claims depreciation on the same.can MrA show the watch in ABC Ltd?
Please reply , its urgent.

Ajay Mishra

Ajay Mishra (Expert)
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12 December 2013 If you are going to make entry in the name of director on behalf of company.

You should ensure that under which policy the company has given watch. It is kind of gift or what.

On the other hand depreciation will not be charged if it is not the property of the company.

Generally it will not be considered the property of the company until company has claim its ownership.

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2013 Sir, I meant to ask whether the watch can be shown in books of accounts of ABC Ltd as asset.If Yes, can it said to be the property of the company as bill was in the name of the director(Mr.A)? My query is still not resolved.

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