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 Topics :
- “Income Tax Implications of Company-Related
- Advice needed: Hypothetical case of non-filing of
- Demand Raised for Cess Amount Despite Section 89 R
- WRONG BILL NO FILED IN GST R1
- Addtional trade name for my another firm
- Commission / Agency Business without books: REAL E
- Difference between AIS and 26AS data.
- Applicability of FCRA to Article Processing Fees (
- GST Return
- Practical queries on buy back of shares
Related Topics :
CAclubindia
