my co has purchased certain fixed assets from china. Cost was $ 500000. We paid 30% in adv. and balance 70% was paid through LC after 3 months. pls explain how to account for these entry. at what cost asstes shoudl be capitalised as rate of $ was changed at each transaction day.
Menu
Accounting for fixed assets
Replies (2)
you should account each transaction at the SPOT Rate (on the date of transaction) itself.
And difference in the value of creditors (of the asset) is transferred to P&L a/c.
agree with ashish
Recent Topic
- Set off of LTCL against STCG under section 536(2n)
- Audit Workflow tool
- Is CA through direct entry easy for a commerce stu
- Dividend and withholding tax - DTAA- RSU
- NRI Query: Capital Gains Tax Exemption under Secti
- Royalty payment to UK
- Calculate ITR2 tax with equity and non equity prof
- LTCG on residential property sale - Rebate?
- TDS MISMATCH AND AIS
- Return filing for intervening period upto date of
Related Topics
CAclubindia
