Is there any possibilty for creating provision for fixed asset which is yet to be purchased during next finacial year although the break up is available based on agreements...amount is not yet paid
Rajasree Mahadevan (student) (26 Points)
10 December 2012Is there any possibilty for creating provision for fixed asset which is yet to be purchased during next finacial year although the break up is available based on agreements...amount is not yet paid
Prashanth
(Chartered Accountant)
(2322 Points)
Replied 10 December 2012
Hello,
Nothing like such provision to be made,however in Notes To Accounts you can mention them the same thing under capital committments.
Devendra
(Chartered Accountant)
(4775 Points)
Replied 10 December 2012
No need to provide for purchase as the Machinery is to be purchased in future. Entry can be made only when the Mahinery is purchased / brought in to the Premises. If you purchase the Machinery on credit, then credit the supplier's account with the purchase price of the machinery. Further the machinery should be capitalised and depreciation should be claimed as per the prescribed rate.
Regards,
Devendra Kulkarni
Sagar Kumar Batra
(MR.)
(105 Points)
Replied 10 December 2012
priyank
(FINAL STUDENT)
(46 Points)
Replied 10 December 2012
no, there is no such provision to be made
Raman
(Asst. Manager)
(33 Points)
Replied 10 December 2012
no need to made provision for purchase of fixed assets
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
