asset capitalizing entry

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Laptop purchased on Redeem points
invoice value 50000 
amount paid 20000
Redeem points offer 30000 
GST input is on full invoice value...so how to account for full value?
Replies (7)

50000 INCLUSIVE OF GST ?? 

yes inclusive of Gst

WHAT IS YOUR GST AMOUNT. HOU MUCH GST CHARGED?

 

42000 base price...CGST @ 9% 3780 SGST @ 9% 3780 ..SO HOW TO ACCOUNT FOR VALUE??

Following is the Accounting Entry :

1 ) Entry for the receipt of Invoice 

Laptop A/c Dr.            42000

CGST @ 9% A/c Dr.    3780

SGST @ 9% A/s Dr.    3780

To Vendor A/c                       49560                      

( Being Laptop purchased )

 

2 ) Entry at the time of payment

Vendor A/c Dr          49560

To Cash A/c                                   20000

To Redemption Points ( Asset ) A/c 29560

( Being payment made for purchase of laptop )

Please note that If you are claiming depreciation on the Invoice Value then you cannot take ITC. i.e depreciation cannot be claimed on GST portion.

If you are capitalising the base value only then GST can be claimed.

but how to clear redeem points in balance sheet? payemnt entry makes Credit balance But actually Im not laible so how to clear that

When you got redemption point you would have debited the redemption point ie. at the time of credit into your account. It is just like cash coming in (If you treat it as an asset).

Now you are crediting it because the same is to be reduced from that balance.


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