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A clothing firm purchased laptop

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Ks

120 Points Posted on 28 February 2022

a clothing firm purchased a laptop of Rs 100000 and delivery charges were Rs 500 and what are the journal entries

does the delivery charges are recorded in delivery expense A/c in which the firm's goods delivery expenses is recorded ???

Replies (7)

Quick Summary

This discussion clarifies the accounting treatment for a laptop purchased by a clothing firm. It explores whether delivery charges should be capitalised as part of the asset's cost or treated as a separate expense. The consensus leans towards capitalising all costs necessary to bring the asset into working condition, aligning with Property, Plant, and Equipment (PPE) guidelines.

Naveen Kumar

355 Points Posted on 28 February 2022

Laptops .( Fixed assets) Dr.
Bank / Sundry Creditors CR.

Delivery expenses Dr ( indirect exp
Cash/ Bank Cr

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 28 February 2022

Generally if it is online purchase then total price will be inclusive of all charges..

prasad Nilugal

GST Practitioner & Accounts

8998 Points Posted on 01 March 2022

As per AS 10 expenses incurred for Delivery to be capitalise .

sabyasachi mukherjee

Profession

19978 Points Posted on 02 March 2022

There is no connection with online and fixed asset.The fixed asset accounting guidelines are different.All expenses incidental to put the asset to its working condition are considered.

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 02 March 2022

Property , Plant & Equipment has different guidelines & there is separate accounting standard.And we can't even call it as Fixed Asset but you need to use PPE.

So the motive of the earlier comment is different.

If it is online payment , total payment will be considered through invoice as PPE but if you go to buy the PPE physically the invoice should not show the other charges