Accounts problem

Dear it purchase AC for business purpose so it is capital expenditure not drawing and the same asset is eligible for depreciation

if any  equipment used  for personal then it is treated Drawing a/c & office used then capital expediture.

so it is purchase account?

If a AC Purchase by a AC Dealer and fixed it in Showroom then i think it is a Fixed Assets,

If AC is Installed in Dealer Home then it should be a Drawing 

I have a problem that some scrap material is sold and advance amount is received which is extra to the sales and the scrap vendor does get the extra amount back till the end of FY. how can i adjust this.  Can this be adjust in the next FY sale

that's fixed asset

use ur own mind... think n den rply......... who say its purchase.

Petty cash account can be maintained but not under indirect expenses.

Amount should be transferred from cash in hand and on excess at the end of year it should be reversed if not it should be kept as current asset.

It cannot be expensed and kept in P&L a/c

This is capital expenditure done by the dealer.He will claim depreciation on this expenditure.

how can it be his drawings??

See the concept of drawing comes only when if the expense is personal in nature and does not belong to the business.Any amount incurred during the course of business or for smooth running of business is business expenditure hence benefit is available.

Dear Aspirants.

We take any item bought in our purchase A/c if that item is our stock-in-trade i.e if we deal in that product or article (if we are buying that item for further purchase).In this case AC is installed in the show room so it can not be treated as purchase.

If a dealer deals in sale purchase of AC then in that case buying of AC will be journalised in purchase A/c as it (A.C) will be stock in trade in that case. Hope u understand the concept