I have two bills of fixed assets - one is the vehicle the other one is machinery. Both the bills are dated 31/3/11 whereas the payment and delivery is made for the assets only in April 2011. Please let me know the date of booking of the above fixed assets in the books of accounts. If it has to be booked in the month of March means should the depreciation be provided for 6 months. Pls let me know.
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Booking of fixed asset
Replies (4)
ASSET WILL BE BOOKED ON THE BILL DATE . I.E. 31 MARCH. AND DEPRECIATION WILL BE CHARGED IF PUT TO USE ON 31ST MARCH
Yes you should account the assets in 31st march and depreciation shoul be calculated for 6months.
As ownership is transferred by bill on 31/03/2011 Both assets are to be booked in F.Y 2010-11 itself and you can enjoy depreciation
Physical possession (receipt) of the assets date can be treated for calculation of Depreciation whereas payment can be made later as we use to do so for Creditors.
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