AA-50-In Which Account Purchasing of Fire Extinguisher for office Use Will be Recorded.

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? 

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
	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%

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%

Dear Raja PM Sir,

Thanks to share depreciation rate.