Under which head pass to entry

This query is : Resolved

kavita (Querist)
Follow

19 March 2025 We have a construction company. We have received the CCTV camera bill, including installation charges. How to pass the entry.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

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.

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok