Under which head pass to entry
This query is : Resolved
Quick Summary
19 March 2025
We have a construction company. We have received the CCTV camera bill, including installation charges. How to pass the entry.
12 August 2025
For a construction company receiving a CCTV camera bill including installation charges, here’s how you should treat the entry:
Treatment:
CCTV Camera + Installation is a fixed asset for your business.
So, it should be capitalized as a fixed asset.
The entire cost (camera + installation charges) forms the cost of the asset.
Suggested Journal Entry:
Particulars Debit (₹) Credit (₹)
Fixed Assets – CCTV Cameras XXXX
To Accounts Payable / Vendor XXXX
Note: The amount includes the cost of the camera + installation charges.
Account Head / Ledger Name suggestions:
Fixed Asset: CCTV Camera or Security Equipment or Plant & Machinery (based on your chart of accounts)
Credit: Vendor or Sundry Creditors
Additional notes:
Since installation is integral to making the CCTV operational, include installation charges as part of the asset cost.
Do not expense the installation charges directly; capitalize them.
Treatment:
CCTV Camera + Installation is a fixed asset for your business.
So, it should be capitalized as a fixed asset.
The entire cost (camera + installation charges) forms the cost of the asset.
Suggested Journal Entry:
Particulars Debit (₹) Credit (₹)
Fixed Assets – CCTV Cameras XXXX
To Accounts Payable / Vendor XXXX
Note: The amount includes the cost of the camera + installation charges.
Account Head / Ledger Name suggestions:
Fixed Asset: CCTV Camera or Security Equipment or Plant & Machinery (based on your chart of accounts)
Credit: Vendor or Sundry Creditors
Additional notes:
Since installation is integral to making the CCTV operational, include installation charges as part of the asset cost.
Do not expense the installation charges directly; capitalize them.
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