Treatment of fixed asset in cash basis of accounting

This query is : Resolved 

Avatar

Querist : Anonymous

Profile Image
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..

Avatar

Querist : Anonymous

Profile Image
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


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



Similar Resolved Queries


loading


Unanswered Queries



CCI Pro

Follow us
add to google news


Answer Query



Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
06 July 2026
C.A./CA Inter OR pursuing C.A./GST/Accounts/Audit/IT - Head

Arvindkumar Maniar & Co.

Rajkot

CA

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details