Can Inventory be transfered Fixed Assets

SUMIT (A.M.) (53 Points)

17 June 2011  

Hi, We are dealing (Trading) in diagnostic instrument and treat them as our inventory. Now we have transfered some instrument to our employees for testing purpose and they will never be sold. They will either be given back by the employees at the time of resignation or transfered to new employees. Now can we treat these instrument as our fixed assets and chrged depreciation. What is according to AS and what are the necessary entries to be passed.

 

Many Thanks in advance

Sumit Chaturvedi

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