Accounting of fixed asset received as gift

A Hospital company has receieved a Refigarator as Gift on a contest.

Same is accounted as General consumables (Direct purchase) in Nil value,

Is it necessary to Capitalise such item and charge depreciation,If it is to be capitalised ,how entries should be passed.

Replies (1)
Depreciation is claimed on the cost of the asset. In this case the cost of the asset is zero. Hence depreciation will also be zero.

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