kollipara sundaraiah (B.com) 14 November 2019
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.
1.how to pass accounting entries.
2. fixed assest value which amount show in balance sheet.
3. Depreciation claimed on asset value.
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RAJA P M ("Do the Right Thing...!!!") 14 November 2019
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...
sabyasachi mukherjee 14 November 2019
It's as per Golden rule of Accounting
Fixed Asset Dr.
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.
Kapadia Pravin 15 November 2019
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 !!!!