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Accounting for fixed assets

manoj (Service) (313 Points)

10 April 2015  

We are purchase a fixed assets. As per payment terms 80% amount paid after receiving fixed assets balance 20% amount pay after 1 year. On completion of 1 year seller not claimed 20% amount. what is the trreatment of this 20% amount.


 2 Replies

Ashish Ojha (Chartered Accountant) (469 Points)
Replied 11 April 2015

First Year, Carry the Asset Book value at Complete 100 Rs & show 20 Rs as Capex Advance..

Post Waiver of INR 20, Reduce the same from the Asset Value itself.

Adjust for the depreciation already charged on INR 20, that will be a credit to P&L

 

Ashish Ojha (Chartered Accountant) (469 Points)
Replied 11 April 2015

First Year, Carry the Asset Book value at Complete 100 Rs & show 20 Rs as Capex Advance..

Post Waiver of INR 20, Reduce the same from the Asset Value itself.

Adjust for the depreciation already charged on INR 20, that will be a credit to P&L

 

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