Treatment of fixed asset in cash basis of accounting


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Querist : Anonymous

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Querist : Anonymous (Querist)
11 July 2011 I wanted to ask that how fixed assets will come in the Balance sheet since it has to be expensed out in the Profit & loss A/c in the year of purchase under cash basis of accounting?

11 July 2011 Fixed Assets will not be treated as expenses on any type of accounts. They are directly debited in fixed assets account. not in the expenses account.
regards..

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Querist : Anonymous

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Querist : Anonymous (Querist)
11 July 2011 Hi,But in pure cash basis of accounting, it can be treated as an expense.....Also, cash basis doesn't distinguish b/w revenue & capital items. please throw some light on this

17 July 2011 Even cash basis or mercantile basis the accounting principles are same. the concept of revenue and capital will not affect that


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