Purchase of fixed asset

Save Share

This query is : Resolved

Quick Summary

This discussion addresses the correct accounting treatment for a fixed asset purchased by a partner using their personal funds for the partnership firm. It highlights that invoices should be raised in the business's name and address, not the partner's personal name, to properly claim input tax credit and depreciation under the IT Act and GST regulations.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
Follow

03 August 2020 a partnership firm one of a partner purchase of fixed asset rs.10 lacs value payments through on partner personal bank account.if invoices billing partner name.fixed assest used for partnership firm purpose.
Question:
Purchase of fixed assest above transaction treatment in firm and partner personal books and accepted under I.t. act.

CA Raj Doshi

CA Raj Doshi (Expert)
Follow

04 August 2020 Book asset in partnership firm Dr.Machinery Cr. Creditor Dr. Vendor Cr. Partner Capital

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
Follow

09 August 2020 Invoice raised in Partner Personal name and being used in business will create problem. Invoice needs to be raised to Business name and Address with all accompanying details like PAN, GST, CIN, Registered address etc to claim Input Tax Credit or Depreciation.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now