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Accounting of asset
Mr A purchased a asset but payment done by third party can we account it as asset in our books
Replies (6)
Quick Summary
Yes you must account if you are able to derive economic benefit out of it and how much third part pays for that asser can be measured.
Also if Tax Invoice is in the name along with business address of Mr A , then A can account asset in the books of A even if payment is made by third party . it's libility of A to pay back to Third party .
Yes, you can
When book asset
Asset A/c Dr.
To Third Party A/c
when payment to third party
Third party A/c Dr.
To Bank
When book asset
Asset A/c Dr.
To Third Party A/c
when payment to third party
Third party A/c Dr.
To Bank
In all this answer, it is possible if the invoice is in name of Mr. A
but if it in name of third party, then ask the third party to raise invoice in name of mr. A with all taxes
as this may be raised in audit with reference to related party a/c
and also Gst rule issue.
but if it in name of third party, then ask the third party to raise invoice in name of mr. A with all taxes
as this may be raised in audit with reference to related party a/c
and also Gst rule issue.
Yes Of invoice is made in the name of A and if invoice is made in the name of third party then you cant directly for that third party permission required so show that transactions in third party books also
Please ignore my previous reply
When book asset
Assets A/c Dr.
To Party A/c
when payment made by third party
Party A/c Dr.
To Third Party A/c
When payment made to third party
Third party A/c Dr.
To Bank
When book asset
Assets A/c Dr.
To Party A/c
when payment made by third party
Party A/c Dr.
To Third Party A/c
When payment made to third party
Third party A/c Dr.
To Bank
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