accounting entries for fixed assest


kollipara sundaraiah (B.com)     14 November 2019

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a doctor purchases of fixed assest(dental chair equipment)value Rs.125000/-
Rs. 25000/- payment mode by cash per day
Rs. 100000/- payment mode by bank RTGs per day. balance amount paid.
Doubts:
1.how to pass accounting entries.
2. fixed assest value which amount show in balance sheet.

3. Depreciation claimed on asset value.

RAJA P M ("Do the Right Thing...!!!")     14 November 2019

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1. Dr. Dental Chair (under Fixed Asset) - 125000
Cr. Supplier A/c - 125000

2. Fixed Asset amount Rs. 125000

3. Depreciation rate @ 10%



Payment entries like...

Dr. Party A/c - XXXX
Cr. Bank / Cash - XXXX...

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sabyasachi mukherjee   14 November 2019

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It's as per Golden rule of Accounting

Fixed Asset Dr.
Real account.
Depreciation is a provisional expense to be charged to PL account.
You can claim depreciation on Asset value while filing returns as explained in Sec 32.

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kollipara sundaraiah (B.com)     14 November 2019

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Depreciation claimed on asset value 100000/- and 125000/- as per I.t. act

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sabyasachi mukherjee   14 November 2019

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Why u hv made part payment in cash?

RAJA P M ("Do the Right Thing...!!!")     14 November 2019

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( Depreciation claimed on asset value 100000/- and 125000/- as per I.t. act )

What is the bill values..?
Basic value and Tax values...?

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kollipara sundaraiah (B.com)     14 November 2019

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Rs. 25000/- paid cash mode ( above 10000/- per day cash) Rs. 25000/- paid amount allowed or disallowed per I.t. act

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sabyasachi mukherjee   15 November 2019

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Disallowed as per Sec 40 A(3) of Income Tax Act.

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Kapadia Pravin   15 November 2019

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@ kollipara
25000/- payment in cash for dental chair is allowed. it's ok no need to worry.

Your Fixed Asset dental chair equipment cost will be 125000/- and you may also add installation and other incidental expenses on dental chair so as to put to it's use.

I just wonder how 25000/- is to be disallowed ? Disallowed from which ???

Something is disallowed only if you have claimed in P&L. That means your income computed under ITax has not considered (allowed) 25000/- as expenditure so where is the question of it's disallowance !!!!

This section 40A(3) does not apply to expenses which is not to be claimed as deduction u/s 30 to 37 under Income Tax Act.

Depreciation on full amount 125000/- you are eligible to claim.

FA value in Balance Sheet is 125000/-

I dissent with above replies.l !!!!


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