Accounts problem

a a/c dealer purchased a/c's but he is not used those for sales so it is not purchases and he did not use it as his personal so it won't be a drawings.so the fixed account will be the correc answer............

its a captial expenditure............ so it will b treated as an asset..... 

first of all if it purchased it for re sale den

 purchases A/c dr.

      To cash/creditors

when used in showroom:

equipment A/c

      To Purchases

note: if it is purchsed wid a motive of using in showroom den:

 equipment A/c

      To cash/ crditors 

@ GAURAV 

 the basic criteria to decide weather any exp . is either REVENUE or CAPITAL ???

It depends on the purpose of its use ,here it is installed in showroom so even it is for owner as well as customer's luxery ...still it is CAPITAL EXP.

Don't think that the owner is making such installation for his own relaxation ,

just understand y he was sitting there ,,,,,,,,its only for business purpose n for no other cause..

So its definately a CAP EXP..

In other words 2 state that INCOME TAX exp. is treated as drawings by Owner, even it is income generated from business....

i hope u r clear now

Its a nature of Capital Expenditure, and ACs should be treated as fixed assets.

Neither Drawings nor Purchase

Its capital Expenditure

shayad house tha jahan tak mujhe yaad h............drawings to purchase hona chaiye....

It will be an only Fixed aseet for owner & not drawing.

The AC should be treated as a fixed asset

it is drawings

2 ans. is trial balance relfect with 1000

Purchase

Dear Sirs,

Individual's PAN can be used for Proprietorship Concern?

Our many Vendors's names are Agencies, Associates, Enterprises. But they are giving only their own PAN Nos. They are not in their Firms' Name. For Tds deduction purpose shall I take it granted (their Individual Pan, because in Contract 194C % differs for Individua and Co. Kindly reply.

Regards,

N. Magesh

A AC DEALER PURCHASED SOME AC'S AND FIXED THEM IN HIS SHOWROOM. 

DRAWINGS OR PURChases ?

answer- its neither a drawings nor purchase.....its a capital entry... because dealer fixing in his showroom hence its a capital item and dep. can be claim on it....

you written that dealer purchased ac and fixed them.. it would be a drawings if he taken ac from his shop and fix them in shop.....

(a) if buy and fix

a.c.

  to bank

(b) if taken from shop and fix

a.c.

   to stock

i hope this query have been now solved... 

@ Lokesh sir.............my query is regarding (b) if the person has taken the AC from his shop stock and fixed in his showroom why would it be treated as drawings instead of capital expenditure....................as he is not using ACs for personal benefit.........

its Fixed Assets because he used in his Business (Showroom) and Depriciation will be  charge on  AC

u remember dat question...he promises to give the flat after one year...question was which is dis consideration...executed,executory,past future?