Dear All Respected Members,
Hope all of you will be fine with good health and doing well.
Please educate me if we purchase a fire extinguisher for office use for 1year validity which will be refilled for next 1 year, in which account, will it be recorded ? Will it be recorded as current assets or expense ? If it is recorded as current assets, what will be entry on completion of 1 year ?
Thanks in advance for your precious time and efforts to reply this query.
| Originally posted by : RAJA P M | ||
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The Fire Extinguisher will be account under Fixed Asset...After completing a year then the refiling will be account under Indirect Expenses... |  |
Dear Raja PM Sir,
Thanks for your informative reply.
Please educate me if we record it as fixed assets, will depreciation will charge on it ? If yes then, what will be the rate of depreciation?
Kind response awaited from Raja PM Sir.
If you dont have to return back the cylinder its a fixed asset. Otherwise itll be stock at hand because there is no asset that you have purchased. However, government compliance suggests that it is mandatory.
Since it's renewal and if you have to return the container
Dr. purchase
Cr. Bank
Next year the same entry
If you get to keep the container
Dr. Fire extinguisher
Cr. Bank
Next year
Dr. Refill expense
Cr. Bank
| Originally posted by : My Videos | ||
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Originally posted by : RAJA P M The Fire Extinguisher will be account under Fixed Asset...After completing a year then the refiling will be account under Indirect Expenses... Dear Raja PM Sir, Thanks for your informative reply. Please educate me if we record it as fixed assets, will depreciation will charge on it ? If yes then, what will be the rate of depreciation? |
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Yes, Depreciation is applicable @ 15%
| Originally posted by : RAJA P M | ||
|
Originally posted by : My Videos Originally posted by : RAJA P M The Fire Extinguisher will be account under Fixed Asset...After completing a year then the refiling will be account under Indirect Expenses... Dear Raja PM Sir, Thanks for your informative reply. Please educate me if we record it as fixed assets, will depreciation will charge on it ? If yes then, what will be the rate of depreciation? Yes, Depreciation is applicable @ 15% |
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Dear Raja PM Sir,
Thanks to share depreciation rate.
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