I bought one new printer for office use and passesd payment entry of,
Printing & stationery a/c Dr
To Cash.A/c.
what would be the capitalisation entry. is there any depreciation to be charged.
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Capitalisation
Replies (16)
Dear sir,
You made a wrong entry, you should make following entry:
Computer & Printer A/c Dr.
To bank / Cash Cr.
Depriciation will be 60%.
Regards
| Originally posted by : Manoj Mehta | ||
 |
Dear sir, You made a wrong entry, you should make following entry: Computer & Printer A/c Dr. To bank / Cash Cr. Depriciation will be 60%. Regards |
 |
Hi,
They bought asset just now then why 60% depriciation need to charged.
Please answer.
Computer a/c Dr
Creditor a/c Car
Creditor Dr
Cash bank Cr
Depr @ 60%for full year
Printer is an asset and printing and stationary is an expense head. You can capitalize printer as asset in the category of computer peripherals and charge 60% dep on that . Entry can be
Printer
To
Cash/bank/creditor
He has not confirmed date of purchase. So we can not give depreciation if it is current day purchase, else can apply. Printer a/c dr To cash&bank a/c dr will be the entry.
Hi professionals,
With out GRN made (GOODS Receipt Note) we wont capitalsed any
Supposed not GRN made means
we have put in CWIP A/c Dr
Vendor Cr
While we pay(if give any advance means)
Vendor Dr
Bank Cr
After Installed the Computer or Fax Printer
Computer/Printer Hardware _FA DR
C Wip Cr
For Depreciate the particular assets
Depreciate dr (As per Company Act)
Computer/Printer Hardware _FA cr
With regards
D.karthik
Kindly tell why asset can't be capitalised if GRN is not made?Where it is mentioned
Grn is not the criteria for capitalisation at all. Goods purchased under valid tax invoice and put to use is the case then eligible for income tax dep for 60% if purchase before 30 sep or 30% as the case may be.making grn is the good practise but not the basic criteria for eligibility. Refer dep as per income tax . ThNks
Dear Karthik,
GRN entry is required only if you involve stores in it, otherwise you can directly capitalize the same, Its not mendatory to route through the process you are telling about.
Dep is from.put to use or ready to use as per income tax??
Ready to use. If there is valid invoice we can capitalise.. 180 days rules apply to charge dep.This is what the rule say.Its so simple to apply
IT'S BETTER WAY TO DO CAPITLISE ENTRY AS GIVEN BELOW.
OFFICE EQUIPMENT(ASSET)........DR
PRINTING & STATIONARY A/C.......CR
IT'S SIMPLE WAY
dear karthi
what is CWIP
Girish your JE seems so much against double entry system and golden rules.. May be u can recheck...
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